Abstract This paper discusses the elements of FAS 143 focusing on assets and liability as they relate to statement of accounting concepts. It offers a comparison to international accounting standards. The paper includes practical examples of companies already implementing FAS 143.
Tags: FASB, SFAS, FAS 143, accounting change, long lived assets, assetretirementobligation, financial reporting, generally accepted accounting principles, disclosure requirements
Abstract This paper focuses on the effects of an aging population on financial asset (stocks and bonds) returns in the U.S. for the post-World War II period. The first part of the paper provides a brief review of demographic changes that will confront a selected country during the next half century. The next part presents a review of the empirical literature on demographics and financial asset demands. Next, the paper develops a conceptual framework for analyzing how an aging population triggered by falling birth rates and rising life expectancies affects the demand for financial assets. A discussion of the ideal data set and an outline of the challenges that arise in estimating how population aging will alter aggregate demand follows. Next, the paper builds up the actual models used in this paper and discusses actual data and proxies. Finally, the paper presents new findings and tests empirically the relation between aging and asset returns in the U.S. The conclusion summarizes the main findings and notes areas for future study.
Outline
The Demographic Transition in the U.S. and Other Nations
Theoretical Background and Literature Review
Conceptual Model
Ideal Data
Actual Model
Results and Analysis
From the Paper "Sell? Sell to whom? This dilemma might haunt the Baby Boomers in the next century as they attempt to unload their assets to pay for retirement. The rising number of middle-aged workers today is the direct result of the Baby Boom generation, those born in roughly the two decades following World War II. It is this high working population ratio, which has often been identified as an important factor for rises in productivity (see Shimer (1998)). As these boomers age, they will have profound social and economic implications for much of the developed world. The large increase in the ratio of retired workers to those in the labor force during the next three decades will place substantial strains on public pension programs. Just in the U.S. anticipated social security expenditures will outstrip income by 2020. In many other developed nations the fiscal prospect is even more daunting than it is in the United States."
Abstract The paper states that the Financial Accounting Standards Board (FASB ) Financial Accounting Standards Board report entitled "Selected Issues Relating to Assets and Liabilities with Uncertainties" was based on a joint 2004 project between FASB and IASB with the purpose of improving the organization's conceptual framework and concerns the ethical obligations of the accountant's reporting requirements. The paper notes that the areas the report seeks to improve focuses on establishing objectives for better financial reporting by creating qualitative characteristics to be used when conducting financial reporting. The paper comments that the main area of interest in the report is assets and liabilities, primarily the role of probability and uncertainty in defining, recognizing and measuring assets and liabilities. Thus the paper highlights that the goal of the report is to establish an objective framework to be used when reporting on the financial issue of probability and uncertainty and its role in measuring assets and liabilities.
From the Paper "According to the current conceptual frameworks, uncertainty is acknowledged as part of the proper definitions of both assets and liabilities. However, neither of the organization's frameworks impose a necessary "threshold level of probability or expectation of cash inflows or outflows in order for an item to satisfy the definition of an asset or liability." Further, the current IASB framework does include a probability threshold criterion as part of its recognition criteria, whereas no such criteria exist in the current FASB conceptual framework."
Abstract This paper explores different strategies for developing a financial and retirement plan. The paper takes into account the realities of today's economy, worker career mobility and phased retirement. Tradeoffs between working longer before retirement, aggressive investing and the role real estate play in an investment portfolio will be highlighted.
Contents:
Financial Planning ? Working Toward the Future
Retirement Planning
401(k)
Traditional IRAs
Simplified Employee Pension
Savings Incentive Match Plan
Portfolios Need Real Estate
From the Paper "There are 76 million Americans who were born between the years 1946 and 1964, they are the so-called baby-boom generation. Fifty-five million Americans are age 55 and older, according to data from the U.S. Census Bureau. Within that number, there are 35 million who are 65 and older, and by 2030 that amount will double to 70 million. Surprisingly the fastest-growing segment of senior citizens is of those who are 85 years old or older."
Abstract A discussion about government policies over retirement protection. The author examines the issues such as retirement funding, schemes, individual savings, investment and social welfare. The author focuses on retirement plan developments in Hong Kong.
From the Paper "In Hong Kong, discussions about government policies over retirement protection have spanned a lengthy period of about 30 years. It was only until recently that the decision has been made to institute the Mandatory Provident Fund (MPF). However, in other countries, various schemes of retirement protection have been practiced over the past decades, with all kinds of experience that Hong Kong could beneficially refer to. Since retirement funds could be either fall into two categories 1. Pays-as-you-go/ 2. Fully-funded. They could either be managed by the government or the private sector. Yet, this is crucial to understand the pros and cons of these different kinds of schemes, and determine which is the most appropriate for Hong Kong. Furthermore, retirement protection is closely related to the issues of individual savings, investment, and social welfare. It affects the economic well being of all members of society, and also the performance of the economy as a whole. In this research paper, several comprehensive views and findings would be addressed, and some discussions on the impacts of MPF after the Asian Financial Crisis would also be stated for conclusion. "
Abstract The paper discusses related arguments that oppose forced retirement. The paper examines how, due to a changed economy and society, many more people want to work past the age of 65. The paper analyzes various myths of retirement, such as assuming that the retiree has sufficient material wealth with which to retire. The paper further analyzes matters of identity, self-concept, meaning, and achievement when removed from the workplace.
Abstract The paper examines how the rapidly aging baby boomer population will impact consumption and government spending on retirement benefits in the US, most notably social security and Medicare. The paper recommends policies that are most likely to maximize the gross domestic product (GDP). The paper also suggests the promotion of consumerism, higher taxes and less benefits for the wealthy, who do not need the Social Security/Medicare safety net, and raising the retirement age by just one year.
Outline:
Introduction
The GDP-Related Challenges of Baby Boomers and Retirement Possible Solutions
Conclusion
From the Paper "Changing demographics are straining Social Security resources. At the end of World War II, there were 44 workers paying Social Security taxes for every retiree collecting from the program (The first baby boomer collects Social Security, 2007). Now, the ratio is just three workers for every one reitiree and retirees will soon outnumber workers. According to the Council of Economic Advisors chartered with providing objective economic analysis and advice on the development and implementation domestic and international economic policies, Social Security will begin to incur annual operating losses in 2018, when its outlays first exceed its tax revenues (CEA memo on Social Security). To cover the shortfall and to "stay open," Social Security will use up its Trust Fund (or draw down its bank account) from 2018 to 2042."
Tags: social, security, Medicare, consumerism, taxes, retirement, age
Abstract This paper studies the beverage company Coca-Cola in relation to ethical concerns over inequities in retirement compensation between different employee classes. The paper concentrates on the issue of excessive retirement benefits for top executives without regard to performance.
Abstract This article discusses that statistics show that retired people fall into two different brackets regarding the internet. The writer notes that they either use the Internet for many different purposes and quite often or they have never used the Internet before. The writer maintains that the Internet is impacting the lives of retired people in many different ways including the use of email and chat rooms, online buying, and distance learning. However, the writer points out that there are problems with the designs of many web pages.
Abstract This paper addresses issues Americans face when planning for retirement. Various problems are discussed, including the drawbacks of 401(k) savings plans, 403(b) savings and IRAs. The author includes a literature review, which concludes that most Americans do not save enough for a comfortable retirement. The writer includes reasons why Americans are not saving properly. Also considered is the declining value of the dollar.
Outline:
Americans Do Not Save
The Decreasing Dollar
Conclusion
From the Paper "Our national policy does not encourage investing or saving, as the tendency for spending is in vogue in top government and the national debit climbs higher than it ever has. "The Brookings Institution warns that if we do nothing for the next 10 year, problems will get so bad that balancing the budget would require a 40 percent plus cut in benefits and spending, or offsetting tax increases. They acknowledge that politically nothing will be done until a crisis explodes." (cited in Farrell, 2006) The value of the dollar continues to decline on the world market and it does affect the average American."
Abstract The writer discusses Socrates' view of the moral and legal obligations to obey the law. This paper looks at Socrates' trial for corrupting the young. The writer explains how Socrates responded to the charges against him. The writer also describes Socrates' reaction to the death sentence.
From the Paper "Socrates was accused of the capital crime of corrupting youth with his teachings and was sentenced to death. Socrates did not deny he was guilty of the charge but rather protested that what he was accused of was something he had practiced his entire life and if it was illegal then his whole life was illegal. He claimed that he was being accused unjustly of corrupting the minds of the young, but had merely made people think and had opened their minds and made them question ... "
Abstract In this article, the writer discusses recent developments that have taken place regarding retirement homes and villages. Relevant issues involved in the transition to a new existence that challenges a person's self-identity are examined in the paper. The writer looks at the difficulties brought about by such a transition in the retiree's life.
From the Paper "Retirees who leave their hectic work lives often confront difficulties with replacing their work weeks with new meaningful activities. For them, their experience of retirement involves a major transition to a new existence that challenges their sense of identity thus undermining their overall well-being during this period. Apart from their withdrawal from a major social sphere of their lives, retirees are often distressed by the loss of control over their lives and their growing dependence on others. The erosion of their ability to care for ... "
Abstract This paper is an examination of the Trust Company of the West, otherwise know as TCW, an asset management firm based in Los Angeles, California. The author talks about why the World Trade Center attack had a large effect on the asset management industry as a whole and more specifically, on the Trust Company of the West's syndicated loans group.
From the Paper "Although September 11th will forever be the day associated with dramatic change, our economy was already in a downward spiral. The markets were weak and consumers and business owners were already preparing for the uncertainties that were predicted. Just a short while before September 11th, the dot-com industry spiraled downward and took the market with it. There were already massive corporate layoffs, business bankruptcies, corporate downsizing and restructuring, an energy crisis and over-consumption in the marketplace."
Abstract This paper describes Thomas Hobbes' views on moral obligation, justice, and rights, based on his general theory of human nature. It looks at Hobbes' contention that men are equal in nature and how this equality often diminishes in society.
From the Paper "Thomas Hobbes held offered a comprehensive account of man's obligations which drew upon his theory of human nature. This essay will answer a series of questions focused on Hobbes' approach to moral obligation rights in the state of .."
Tags: Thomas Hobbes moral obligation state of nature, justice
Abstract This paper analyzes the Capital Asset Pricing Model, describing some of its numerous benefits. With the CAPM, traders can avoid much of the risk they incur through diversification. Therefore, only unavoidable risk should be compensated. Nevertheless, even after a trader diversifies his portfolio, some risk remains. Because some risk is associated with the market as a whole, this risk cannot be neutralized through diversification, and CAPM explains that.
