Monetary Macroeconomics and Policy assignment Essay

Monetary Macroeconomics and Policy assignment - Essay Example (b) A scenario where the households become more optimistic can be classified under the demand shock. As households become optimistic in the future, they will tend to consume less (reduced demand), with the hope that maybe they are going to consume more in the future at relatively lower costs. As a result, producers will lower their level of production a little bit and also lower their prices as well. The effect of reduced prices of commodities is reduced level of inflation in the long run, in the economy. (C) The case of favorable weather would be classified under the supply shock. Favorable weather may mean vast surplus of wheat and corn than the normal expected supply. A favorable weather may imply increases level of supply (output) and hence reduced prices of commodities. Continued reduction on the prices of commodities will lower the level of inflation in the long run (d) The situation under which the steel workers go on strike for four weeks may be classified under the demand shock. The fact that the steel workers goes on strike means that they are no longer producing steel and the supply (output) of steel goes down immediately (short-run). Due to scarcity of steel, the price of steel goes high and if the prices remain high, there will be inflation in the long-run. This is shown in the graph below. If we examine the case of the aggregate supply curve, we realize that it examines how different quantities of goods and services relate with the price level in the economy. The aggregate supply curve is upward sloping. However, the curve will tend to be vertical, or will become vertical in the long run. The supply will be affected by factors such as technology and overall improvements that affects productivity in the short-run and in the long-run. Factors such as increased efficiency and offering of public goods at relatively lower prices will shift the AS curve to the right. In the case where the public expects the level of interest

the origin of electoral college Essay -- essays research papers fc

  Ã‚  Ã‚  Ã‚  Ã‚  In the United States of America, the presidential election takes place every four years, on the first Tuesday of November [1]. Most people believe they are directly voting for the presidential candidate, and the person with the most popular votes will win the election. However, instead of voting for the presidential candidate, people are voting for the electors, individuals who vote in the Electoral College. Moreover, the total electoral vote, not the popular vote, actually determines the winner of the United States presidential election. The election of the year 2000 is a perfect example of the Electoral College. President George W. Bush won the presidential election of the year 2000 with more electoral votes, not popular votes. Before the presidential election of year 2000, most people pay no or little attention to the electoral votes, because most people do not understand the concept of the Electoral College, or even did not know there the different between po pular votes and Electoral College.   Ã‚  Ã‚  Ã‚  Ã‚  Before continue to discuss about the Electoral College, we must first understand the history of Electoral College and the concept of how does it work. The Electoral College system was established in Article II, section I, of the U.S. Constitution.   Ã‚  Ã‚  Ã‚  Ã‚  The Electoral College was established by the founding fathers as a compromise between election of the president by Congress and election by popular v... the origin of electoral college Essay -- essays research papers fc   Ã‚  Ã‚  Ã‚  Ã‚  In the United States of America, the presidential election takes place every four years, on the first Tuesday of November [1]. Most people believe they are directly voting for the presidential candidate, and the person with the most popular votes will win the election. However, instead of voting for the presidential candidate, people are voting for the electors, individuals who vote in the Electoral College. Moreover, the total electoral vote, not the popular vote, actually determines the winner of the United States presidential election. The election of the year 2000 is a perfect example of the Electoral College. President George W. Bush won the presidential election of the year 2000 with more electoral votes, not popular votes. Before the presidential election of year 2000, most people pay no or little attention to the electoral votes, because most people do not understand the concept of the Electoral College, or even did not know there the different between po pular votes and Electoral College.   Ã‚  Ã‚  Ã‚  Ã‚  Before continue to discuss about the Electoral College, we must first understand the history of Electoral College and the concept of how does it work. The Electoral College system was established in Article II, section I, of the U.S. Constitution.   Ã‚  Ã‚  Ã‚  Ã‚  The Electoral College was established by the founding fathers as a compromise between election of the president by Congress and election by popular v...

American Revolution or Evolution

Saroosh . H. Khan American Evolution or Revolution? The theme has been subject to excessive discussion over the course of more than two centuries encompassing the existence of the United States. Although it has been taught for as long in our schools and classrooms and all other educational institutions that the year 1776 Anno Domini marks the year of American Revolution, but amidst historians and intellectuals the dilemma to whether to call it a revolution or an evolution has never been out of question. Reader! Doesn’t it enthrall one that a single word could bifurcate scholars and create factions amongst the erudite. ?Por que (why? ) there must be a reason and there is! The answer is simple yet rational: Perspective. Albert Einstein, (the famous physicist) most remembered by his theory of relativity, concluded that distance and time were not absolute. History resides in the same niche. It is more than a chronological account of past events of a period or a livelihood or development of a people, an institution, or a place. But what it is not is absolute. It is always left upon interpretation, scrutiny, analysis, probing and pondering. The perception or perspective gained through such rigorous processes is also subject to the base of a historian. It is very uncommon to find historians sharing their bases of initial learning and therefore the effect of their own era, age, surroundings and upbringing must also be taken account of. A revolution, defined by Encyclopedia Britannica is: a major, sudden, and hence typically a violent alteration in government and in related associations and structures. On the other hand Oxford dictionary defines an evolution as: the gradual development of something, especially from a simple to a more complex form. Let us decide upon the usage of the word Revolution, which one can venture out to say, could be dated from the year 1775 with its ignition being the battle of Lexington and Concord and culmination being the ratification of the constitution of the States in 1782. Seemingly easy doesn’t it? It doesn’t really respond to how fundamentally did the thoughts, ideals, ideology and mindset of a 2. 5 million inhabitants change and led to he chain of events that became known as the American Revolution. What I believe is that no people in the course of history have ever rebelled against a certain state, condition or ideology without a buildup of grievances, resentment or a gradual shift of attitude towards accepting a better socio-dogma. Let’s go back to the early 17th century when immigrations began to take place into the New Wo rld. Herds of folks comprising of German, Irish, Scottish, Welsh, Jewish descent and not to mention the French Huguenots, began pouring into the lands in order to escape from the fetters of the Old World. They did not have any more an appetite for its rituals, its doctrines, its curbing of civil liberties, and mostly the cost of living in it. One can even say at this particular time, that they were revolting as a denouement of the evolution of the aforementioned causes. So it would be appropriate to say that a 17th century Europe was in revolution. Let’s go further with this theory and say that the immigrants reaching the New World were revolutionaries. Almost 150 years of Pax Americana (used strictly in context with the time period and not according to current usage) so to say was enjoyed by the colonists. During this time, some changes irrevocably did take place. This is evident from the fact that the language that the majority of the immigrants originally spoke had evolved into a different dialect. So from this we can also entrust upon the belief that alongside linguistics political and socio-economic changes did also take place. A political change that actually began with the migrations was the rise of a political ideology known as Republicanism. Technically ruled by Great Britain or more accurately looked over, the colonies practiced the policy through their town halls and city councils. Very famous examples of such republican instruments were the Virginia House of Burgesses and the Massachusetts Assembly. These were regulated by either representative or direct democracy. The symbol of democracy at the time was looked upon as the House of Commons in England, however it did seem a bit more than contradicting to have the Buckingham Palace towering high in the very country. The colonists did give their allegiances to the monarch but because of the fact that it was kind of conditional. Although they did not realize it nor was it formally declared but they remained docile because they were never tampered by British legislations. They had during this time, created their own principles, created their own system of jurisprudence, law, justice, methods of trade, commerce, education, agriculture etc. When after the French and Indian war, the British began actively participating in the earlier enumerated colonial components of society; it would’ve obviously been not received glad handedly by the Colonists as it did not. Let’s now examine the economic evolution that took place to ensure America’s Independence. The 150 year old period was in terms of trade and commerce coined as a period of salutary neglect. For the colonists it brought economic prosperity and industrialization. For the British it was shooting themselves in the foot. Intentional lax in order to show the appreciation for economic freedom while regulating the policy of mercantilism. Does it make any sense? One would question Robert Walpole’s sanity between all of this; however he is not our subject of concern. What you shall so sow so shall you reap; a very old and passed around saying isn’t it? But it does make sense in the context. The British for a very long period of time followed the policy and the colonist enjoyed its benefits. Smuggling was nothing out of the blue, very common. Other European nations also benefitted from it, the Colonial agriculture products such as hay, wheat, barley, maize and cotton were valued highly in foreign markets. When the British annoyed at Colonial stubbornness to pay taxes, passed the writs of assistance; there was an outrage. There had to be one, like it did, smuggling was not put up with anymore and a flow of revenue generation created as a result of foreign trade stagnated. How were the merchants to run their businesses without the freedom of trading being allowed to them as it had always been? Hence there was an outcry by the merchants who went bankrupt as a result of such legislation. Ah! One cannot expect the theme to be talked about without the mentioning of taxes somewhere or another. The country was not at all familiar with taxes; once again it is necessary to mention that when we talk about being not being tampered for almost 150 years it is meant more than it sounds. Citizens in Britain were obliged to pay taxes, however their brethren in the New World were not. I do at times believe that absolute freedom corrupts absolutely, there should be some harnesses or bridles put on in order to let ivility root in or in this case for rule to sustain. When suddenly exposed to direct taxes such as Stamp Act and Sugar Acts why would it not cause havoc with in the colonists? It would lead to acrimony towards the crown like it did, it would lead to mass protests like it did and would lead to severing of ties like it did. In the beginning I wrote about how a historical event is su bject to independent interpretation. How historians may or may not agree on something because of the different elements molding the shape of the basis for their knowledge. I must confess that it is not arbitrary and applies to myself as it does to any other individual. I believe that evolution without revolution is lame and revolution without evolution blind, very similar to what Einstein said about religion and science. One thing is for certain though, nothing is by nature revolutionary. There has to be friction to beget fire. During the 150 year period evolutionary changes in political beliefs, social policies and economic mechanisms did take place otherwise the colonists would’ve never armed themselves to teeth and hoisted the flag of revolution.

Khaled Hosseini s Life And Life - 1947 Words

Biography: Khaled Hosseini was born in 1965, in Kabul, Afghanistan. Hosseini’s mother worked as a teacher at the local high school in Kabul, while is father worked as a diplomat for the Afghan Foreign Ministry. Hosseini’s father, Nasser Hosseini, in 1970 was assigned to Iran, where his whole family would up and follow him to Tehran where they lived until 1973. Another large even happened in 1973, this is the same year that the Afghan king, Zahir Shah, was overthrown leaving the country â€Å"vulnerable†, and the government â€Å"unstable†. Three years later, 1976, Hosseini’s father was changes diplomatic duties, and was moved to Paris. The family of Hosseinis’ lived there though 1980, when Afghanistan had fallen under communism. By the time the†¦show more content†¦These two friends are separated by the Soviet invasion that happened in 1979. Amir and Hassan had a common love, and bonded over kite fighting. Eventually Amir escapes to California during this time, where he became a successful writer, and eventually gets married. Fifteen years after Amir gets married, he gets a call telling him to return to Kabul, where he would go to rescue Hassan’s son, Sohrab. He also finds out that Hassan and himself are half brothers, and that Hassan and his wife were killed bu the emergent Taliban government. Amir goes back to Kabul, and save Sohrab and takes him back to his house in California, where the two eventually connected and bonded over kites, just like him and Hassan did. 1st comparison- Socioeconomics: The largest culture aspect that is shown in the book the Kite Runner is the socioeconomic differences between ethnic groups. An example of this from the book is the difference between Pashtun’s and the Hazara’s. A Pashtun is a group predominantly an Eastern Iranin person, who used Pashto as their first lunges, and they live in Pakistan and Afghanistan. While a Hazara is a Shi’a Muslim, and has a small part with in Afghanistan. There is a conflict through out the whole book because Amir and Baba are Pashtun, and Hassan and Ali are Hazara, this is a conflict because the large difference between the groups. Hosseini does a very good jobShow MoreRelatedClass Inequality In The Kite Runner1320 Words   |  6 Pageswhether it be be a person s race, belonging to a certain religious or ethnic group, or social status. It shouldn’t be that way, but that’s the predicament that society finds itself in. In the novel, The Kite Runner by Khaled Hosseini these prob lems are evident throughout the book. Taking place in war torn Afghanistan and the safe haven of the United States, Amir and his father Baba face the struggle of transitioning from the upper class lifestyle in Afghanistan to the life of middle class in AmericaRead MoreCritical Analysis Of The Kite Runner1090 Words   |  5 Pagesfaced with an obstacle they must overcome, ultimately defining their morals and values. In the literature perspective, the novel The Kite Runner delivers multiple thematic ideas that portray the struggles of characters in their ordinary lives. Khaled Hosseini, author and physician, released his debut novel The Kite Runner in the year of 2003. This novel is written in the first person narration of Amir, a Pashtun boy that lives with his father whom he addresses as â€Å"Baba† in a large estate in Kabul,Read MoreKhaled Hosseini s The Kite Runner1679 Words   |  7 Pages Khaled Hosseini was born in Kabul, Afghanistan, on March 4th 1965. Hosseini s homeland was the inspiration for his novel, The Kite Runner, which gave his readers a taste of what Afghanistan was before the brutal invasions of the Taliban. He spent his early childhood living in Tehran, Iran, where he befriended his family s cook. The unexpected friendship between a young Afghan and a member of the Hazara ethnic group exposed Hosseini to the acts of injustice against minority groups in AfghanistanRead MoreAnalysis Of Khaled Hosseini s The Kite Runner 1256 Words   |  6 PagesRunner’, by Khaled Hosseini, occur where authority has been mistaken for enormity. Baba s expectations out of Amir and his tactics of dominance towards making Amir into someone he desires, is the power, mistook as magnitude. Also, the element that baba was sexually convoluted with Ali s wife, but had the capacity to keep it concealed and buried for long, is the power, of power. Furthermore, how Amir takes advantage of him being superior in terms of society s perception, over Has san s generous andRead MoreReader Response For The Kite Runner1348 Words   |  6 PagesReader Response for The Kite Runner Section 1- Writing Style: Khaled Hosseini, author of The Kite Runner, is most definitely different than other authors. He uses strong, detailed words that may be difficult, at some points, to understand. His use of vocabulary is rather challenging for me. The more use of challenging vocabulary, in my opinion, makes the book even more interesting. Now, I’m not a big fan of reading, but after reading this book, I had found an interest in reading more challengingRead MoreExamples Of Vanity In The Kite Lear1424 Words   |  6 Pagesfor a person to feel pride without their cultures ethics. In the Kite Runner, Khaled Hosseini tells the story of a young Afghan boy, Amir, whose childhood interactions with his father and Pashtun culture shape his moral compass. Vanity especially influences his desires to achieve through the fulfillment of his father s expectations as well as Pashtunwali, the set of social norms set for Pashtuns. Through Amir, Hosseini demonstrates that vanity is something that shapes people i n their childhood, eventuallyRead MoreEssay about Characters of The Kite Runner854 Words   |  4 PagesPublished by Riverhead Books in 2003, Khaled Hosseini wrote The Kite Runner, a powerful story of love, fear, friendship, redemption, and the reality of the cruel world we live in. In this tale, you develop a personal relationship with the characters as you feel their emotions. Khaled Hosseini brings his characters to life eloquently. The relationship between son and father, rich and poor, countryman and his country, Pashtun and Hazara, friend and brother, andRead MoreAnalysis Of Khaled Hosseini s A Thousand Splendid Suns 1657 Words   |  7 PagesIntroduction Khaled Hosseini and Marjane Satrapi know that there is more to the Middle East than terrorism. Khaled Hosseini demonstrates his understanding of Afghanistan through Mariam’s and Laila’s lives in A Thousand Splendid Suns. Hosseini begins their tale during the Soviet Invasion of Afghanistan in the 1970’s and ties it off during the post-Taliban reconstruction of the early 2000’s. Hosseini himself was born in Kabul, Afghanistan and is a U.S. envoy to the United Nations Refugee Agency (UNHCR)Read MoreThe Kite Runner By Khaled Hosseini1339 Words   |  6 PagesEach child has the potential to be a police officer, a firefighter, or an astronaut. Although every destination in life is reachable, depending on the environment of the child, one might have to work harder than the other in order to reach it. Each environment creates a pathway of right or wrong in what the child should believe in, become, and achieve. In the Kite Runner, Khaled Hosseini tells the story of a young Afghan boy, Amir, whose childhood interactions with his father and his Pashtun cultureRead MoreThe Kite Runner By Khaled Hosseini1430 Words   |  6 Pagesthey have truly gained full control over their identity. In the Kite Runner, Khaled Hosseini tells the story of a young Afghan boy, Amir, whose childhood interactions with his father and Pashtun culture shapes his moral compass. Vanity especially influences his desires to achieve through the fulfillment of his father s expectations as well as Pashtunwali, the set of social norms set for Pashtuns. Through Amir, Hosseini demonstrates that vanity is something that shapes people in their childhood,

Gender Roles Are Based On Norms, Standards, Or Beliefs...

Gender Research Paper Gender roles are based on norms, standards, or beliefs created by society. American culture created the ideals that masculine roles (men) have traditionally been associated with strength, aggression, and dominance, while feminine roles (women) have traditionally been associated with passivity, nurturing, and motherly. â€Å"When Men Break the Gender Rules: Status Incongruity and Backlash Against Modest Men† focuses on atypical men who behave modestly during a job interview and the backlash they receive for going against their specific gender rules. Information regarding doing gender for men has not been sufficiently documented or adequately researched. The negativity that men receive for not conforming to their gender is starting to receive attention and deserves recognition because gender roles tend to harm people. Men are afraid to act on any type of role that does not display masculinity because many feel that society will backlash of their nonconformity. The pressure of men to hold onto the ideals of masculinity damages their overall human and mental body. â€Å"When Men Break the Gender Rules: Status Incongruity and Backlash Against Modest Men† center on whether stereotyping-violating modest men incur backlash in workplace. The people rated the participants on liking, hirability, stereotypic trait indexes, competence, and credibility of actors who were male and female posing as an applicant considered for a computer lab position. A few results came outShow MoreRelatedGender Roles And Gender Stereotypes Essay1449 Words   |  6 PagesProspectus: Gender roles and gender stereotypes in advertising My position: I believe advertisements that reinforce female gender roles and stereotypes are damaging to society. 2. Non-favorable Incidents: The examination of the â€Å"Victoria’s Secret† ad for a line of undergarments labeled â€Å"The Showstopper.† The headline is â€Å"Show nothing but your shape,† and the image is a thin woman with big breasts staring seductively. The image clearly sets a tone that this is what is a stand of ideal beauty. AndRead MoreStructural Functionalism : A Complex System1060 Words   |  5 PagesStructural functionalism views society as a complex system and focuses on different contributions to social stability. Structural functionalism attempts to explain why society focuses the way it does by targeting relationships such as race, religion, law etc. Each member of society fulfills certain functions to meet the needs that contribute to society’s stability and survival known as norms. Race provides an important way of understanding various parts of the social process. When social institutionRead MoreMedia And Mass Media907 Words   |  4 PagesInformation is transmitted within a culture through mass media which plays an important role in society through different sociological perspectives. In the case of the functionalist view, providing entertainment is one of the top functions of mass media. In addition, functionalists say that the media can also act as an agent of socialization and an enforcer of social norms. Mass media can also tell people what society expects from them through incentives and punishments depending on a person’s behaviorRead MoreThe Social Discrimination Of Women977 Words   |  4 Pageshad created long ago. We are indeed very oblivious to the patriarchy and prejudice we are surrounded by because we are accustomed to what our parents and guardians believed in while growing up. Their ideologies are embedded into our brains thus leading us to unknowingly spread false information and make assumptions based off of those thoughts. A few examples would be the worldwide belief that men shouldn’t cry or that men should be the individual in control. On top of that, with these beliefs, manyRead MoreSexual Nature And Sexual Differences1560 Words   |  7 Pagesnineteenth-centuries. During this period the new scientific knowledge is increasingly accepted concerning biological sex, gender, and sexuality, under which the belief that men and women are biologically different emerges. As the acceptance of this discovery grew it creates a new cultural system of proper behavior for men and women, and new constructions of gender. Through the change in the gender/sex system, Rousseau’s ideas about what makes men and women different and the evolution of homosexuality the waysRead MoreGender Roles : Gender And Gender1587 Words   |  7 Pagesbetween gender and sex. Sex is anatomical and biological. Gender role can be defined as a person’s inner sense of how a male or female should feel and behave. Culture and society are two important factors in relation to this particular topic. This implies that various societies and cultures may produce children and later fully grown men and women who may have diverse perspectives of a man or a woman’s place or role in the world around them; this is often determined by their culture’s gender stereotypesRead MoreThe Sociological World : Functionalism, Conflict Theory, And Symbolic Interactionism978 Words   |  4 PagesSociology is the study of groups of individuals within societies and the interactions involved. These studies are performed on micro and macro levels, studying the cultures and patterns of people (Keirns et al., 2015, p. 6). Sociologists use sociological imagination, a term created by C. Wright Mills, to describe cultures by acknowledging their own life experiences and assigning that to the circumstances around them (Mills, 1959). There are three main theoretical perspectives in the sociologicalRead MoreGender Differences And Gender Inequality1717 Words   |  7 Pages Gender differences a nd gender inequality are sometimes used interchangeably but do not refer to the same thing. The two concepts are common in gender literature; however, they are not uniform across different cultures based on the degree of conservative attitudes present. The significant differences between sexes and used as arguments against equal rights primarily against women’s rights. Hence, the gender issue has continually been created in light of the standard views or conceptions ofRead MoreSocial Pressure Demands On The Sexes991 Words   |  4 Pagesand life compass for the entirety of their life. Gender can be defined as the masculine and feminine qualities of an individual. One can identify on this spectrum anywhere from overtly domineering to compassionately submissive. Sex has a great effect on where a person identifies themselves on this spectrum. Domineering, leadership roles are often given to men, and nurturing, caring roles are often given to women. These societal â€Å"normsâ €  and gender typing have great impact on the individual thoughtRead MoreGender And Non Care Related Careers1128 Words   |  5 Pagesdevelop† (Fleur). Careers themselves do not have genders, but are given â€Å"male† or â€Å"female† categories by people collectively based on various stereotypes. Technology and non-care related careers are mostly considered male oriented, while people-oriented careers such as caretaker and nursing are considered female oriented. Unequal gender based assumptions of careers are the result of accepting widely viewed conventional ideas that inhibit workplace gender diversity, rather than work dissatisfaction.

Themes In Monty Python - 743 Words

Monty Python essay Medieval literature has been involved in the school classroom for a very long time. Medieval literature is very important and even though itÅ› old it offers many interesting stories and life lessons. There are many medieval literature works- Beowulf, the author tales, and more. The film of Monty Python and the holy grail combines all the medieval literature and satirises them all. The Monty Python film mocks and satirizes a lot of the important themes in the medieval literature. Among the many themes it satirizes, the theme of Chivalric Code and Knightly Behavior is the most prevalent. Many themes are repeated over and over again and it is easy to draw conclusions from what we read in class to the movie. Through this†¦show more content†¦All the characters have to go into a cave, but a bunnie is guarding it. A knight walks up to the bunnie to fight it and it bites his head off. Then king Arthur hm self and other knights all fight the bunnie all at once. But it beats all o f them up and they have to run away screaming. Knights arent supposed to lose and certainly arent supposed to run away. The Art of Courtly Love Role/Responsibility of Women was also satirized in the movie. In the movie, lancelot thinks thereÅ› a damsel in distress. He finds the castle and decides to save her. When he enters the castle he kills everyone. The way they do it in the movies though is so over the top and ridiculous itÅ› funny. When he gets to the top of the tower he opened the door and thereÅ› a guy in side. HeÅ› confused about why thereÅ› a guy there and no lady. It turns out the guy didnt want to be married and need saving. Monty python is making fun of how every story about knights has to have a helpless woman in distress needing help form a knight. Of course Lancelot is upset and leaves. But people were mad at him because he killed so many people and they chased him out. Through the hour and thirty two minutes of Monty python and the holy grail movie many themes are introduced and satirized. The Chivalric Code and Knightly Behavior associated with knights is mocked throughout the whole movie. The movie pokes run at their bravery making them too brave, like with theShow MoreRelatedA Comparison Of Monty Python And The Holy Grail715 Words   |  3 Pagesimmortal green knights are a bit outlandish. Other portrayals of this time period include Monty Python and the Quest for the Holy Grail, which deliver a unique spin on a classic story in the form of satirical humor and parody. While the presentation of the two stories differs drastically the underlying themes of Chivalry, Religion, Nobility/Heroism, love, and Good vs. Evil are present and mocked. In Monty Python and The Holy Grail many ideas are mocked in the form of satirical humor. For instance,Read MoreMonty Python and the Holy Grail Essay1672 Words   |  7 PagesMonty Python and the Holy Grail A British Parody By: Norwin Adarve Monty Python and the Holy Grail has been a comic success in the film industry for almost four decades. The main reason for its success is because the jokes have kept the audience laughing whether they watched it in 1975 or just saw the comedy for the first time yesterday. Monty Python and the Holy Grail would fall under two categories of comedy, a satire and a parody. In contemporary usage, a parody is a work that imitates anotherRead MoreMonty Python Influences1363 Words   |  6 Pagesin the dictionary, Monty Python has influenced the culture of Britain heavily. The sextet’s surreal humor has manipulated what many people find to be funny. The use of their word has affected British literature. Their popular song â€Å"Always Look On The Bright Side Of Life† has become the most played song in funerals throughout Britain. My primary sources include The Atlantic, and CNN. My secondary sources are The Rolling Stone and Biography.com. My other sources are â€Å"Monty Python, Shakespeare andRead MoreMonty Python And The Holy Grail Satire1575 Words   |  7 Pages In Monty Python and the Holy Grail satire is used quite often to make fun of the Catholic faith. One of the most noteworthy moments is near the beginning of the movie when the monks are walking through the town chanting. Monty Python may use rather ludicrous humor to get their point across; however, they do a good job conveying the faults in the Catholic Church and display them on film. The movie does this through setting, characters’ costumes, and music. Near the beginning of the movieRead More Arthurian Legend Essay1498 Words   |  6 Pagesunderstands the Arthurian legend. Especially in the movies the central idea of a literary work can be lost. Compared to Malory’s Le Morte d’Arthur have movies lost sight of what the Arthurian legend tries to teach? Le Morte d’Arthur has several different themes working within in for Hollywood to choose from. An easy one for moviemakers is the glorification of the hero. In Malory’s work it appears that he is glorifying Arthur but really his work is being very critical. Arthur is an interesting man, and MaloryRead More The Satirical Essence Of Monty Python Imbibed Into Cotemporary Theatre2165 Words   |  9 Pagesever change such a notion. Monty Python’s Flying Circus revolutionized the stage performance, incorporating many aspects of modern day theatre; such as realism, surrealism, futurism, existentialism and of course Theatre of the Absurd, for no Python sketch was sans an eccentric dash of absurdity.The very roots of Monty Python lay in the humble beginnings of six men, five British and one American, who took to the stage in college and never looked back. The six Pythons; Graham Chapman, Eric Idel,Read MoreMonty Python And The Holy Grail 1975 Directed By Terry Gilliam And Terry Jones2247 Words   |  9 PagesThe infamous British film known as Monty Python and the Holy Grail 1975 directed by Terry Gilliam and Terry Jones, was considered a cult classic among the comedy genre. But what made it so significant among other films during that era, and why is does it still stand the test of time? Classical films were originally considered more than just another form of entertainment. This form of media allowed artist to visually express their personal views through the big screen. Some film makers tend to leanRead More Life of Brian as Historical Satire Essay examples2766 Words   |  12 PagesMonty Python’s Life of Brian traces the tragic last year of Brian of Nazareth, a man who shares his exact birthday and town with Jesus Christ, the subject of countless biblical epic films. Comedy distinguishes this biopic, which features a male actor playing the analog of the Virgin Mary, a cured leper begging for alms, and spontaneous song on the crucifix. It is not sufficient, however, to relegate the film to parody, which seems the obvious criticism, simply for taking a comedic outlook.Read More Comparing the Comedy Central TV Channel to ComedyCentral.com1205 Words   |  5 Pagesworld of Comedy Central, without having to turn on the television set. Similar to the television channel, viewers probably have in mind an idea of what to expect. All of Comedy Centrals television programming, which includes shows like the Monty Python, South Park, and Absolutely Fabulous, contains a very high degree of hilarity and nonsense. Strangely enough, for a channel that projects such antics and doesnt really take themselves seriously, the website is very well organized, sensible, andRead More King Arthur Essay example1872 Words   |  8 PagesKing Arthur If the name of King Arthur is mentioned, I suppose what comes to mind is not so much one person as a whole array of characters and themes, a montage so to speak. Of course we do think first of the King, the magnificent monarch of a glorified or idealized medieval realm. But we think also of his Queen, of the fair and wayward Guinevere, we think of his enchanter, Merlin, who presided over his birth, who set him on the throne, who established him there in the early and traveled days

Citibank Performance Evaluation Case Study Free Essays

Annual Report Consolidated and Statutory Financial Statements at December 31, 2006 101st fiscal year Fiat S. p. A. We will write a custom essay sample on Citibank Performance Evaluation Case Study or any similar topic only for you Order Now Financial Statements at December 31, 2006 234 Financial Review of Fiat S. p. A. 238 Income Statement 239 Balance Sheet 240 Statement of Cash Flows 241 Statement of Changes in Stockholders’ Equity I am enough of an artist to draw freely upon my imagination. Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world. Albert Einstein 242 Income Statement pursuant to Consob Resolution No. 5519 of July 27, 2006 243 Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 244 Notes to the Financial Statements 301 Appendix – Transition of the Parent Company Fiat S. p. A. to International Financial Reporting Standards (IFRS) Financial Review of Fiat S. p. A. The financial statements illustrated and commented on in the following pages have been prepared on the basis of the company’s statutory financial statements at December 31, 2006 to which reference should be made. In compliance with European Regulation no. 606 of July 19, 2002, starting from 2005 the Fiat Group has adopted International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) in the preparation of its consolidated financial statements. On the basis of national laws implementing that Regulation, starting from 2006 the Parent Company Fiat S. p. A. is presenting its financial statements in accordance with IFRS, which are reported together with comparative figures for the previous year. Operating Performance Specifically: Personnel and operating costs, totalling 199 million euros, comprise 58 million euros in personnel costs (60 million euros in 2005), and 141 million euros in other operating costs (121 million euros in 2005), which include the costs for services, amortisation and depreciation and other operating costs. These costs increased as a whole by 18 million euros from 2005 as a result of non-recurring charges. In 2006, the average headcount was 140 employees, compared with an average of 133 employees in 2005. The company’s Income Statement is summarised in the following table: Investment income – Dividends – (Impairment losses) reversals – Gains (losses) on disposals Personnel and operating costs net of other revenues Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Income taxes Net income Personnel and operating costs net of other revenues total 120 million euros, compared with 109 million euros in 2005. I The Parent Company earned net income of 2,343 million euros in 2006, 1,226 million euros higher than in 2005 when the result included net non-recurring income of 1,714 million euros. (in millions of euros) Business Solutions S. p. A. (for a total of 147 million euros), net of the revaluation of the investments held in Fiat Netherlands Holding N. V. (376 million euros due to the positive performance of the CNH and Iveco subsidiaries), Magneti Marelli Holding S. p. A. (144 million euros) and minor companies. 2006 2005 2,461 62 2,099 – (120) – (24) – 26 2,343 (424) 8 (431) (1) (109) 1,133 (62) 858 (279) 1,117 Investment income totals 2,461 million euros compared with investment expense of 424 million euros in 2005 and consists of dividends received during the period and reversal of impairment losses (net of write-downs) of investments. Specifically: Dividends total 362 million euros and were received from the subsidiaries IHF – Internazionale Holding Fiat S. A. (259 million euros), Fiat Finance S. p. A. (75 million euros) and other companies. In 2005 dividends received from investments totalled 8 million euros. I Impairment loss reversals (net of write-downs) of 2,099 million euros resulted from the revaluation of the investments in the subsidiaries Fiat Partecipazioni S. p. A. (1,388 million euros mainly connected to Fiat Auto), Iveco S. p. A. (946 million euros) and Fiat Netherlands Holding N. V. (96 million euros connected to CNH), all written-down in previous years, net of the impairment loss recognised on the investment in Comau S. p. A. (330 million euros). I Other revenues , totalling 79 million euros (72 million euros in 2005), principally refer to the change in contract work in progress (agreements between Fiat S. p. A. and Treno Alta Velocita – T. A. V. S. p. A. ), which is measured by applying the percentage of completion to the total contractual value of the work, to royalties for the use of the Fiat trademark, calculated as a percentage of the revenues generated by the Group companies that use it, and the services of executives at the principal companies of the Group. The increase from 2005 is mainly attributable to higher charges for the use of the trademark. No Income (expenses) from significant non-recurring transactions is reported in 2006. In 2005 a gain of 1,133 million euros (net of related costs) was recorded on the transaction regarding the termination of the Master Agreement with General Motors. In 2006, there were net financial expenses of 24 million euros, arising from the interest charges on the Company’s debt, which was partially offset by the gain resulting from derivative financial instruments. In 2005 there were net expenses of 62 million euros mainly arising from the interest expenses connected with the Mandatory Convertible Facility. No Financial income from significant non-recurring transactions is reported in 2006. In 2005 this item included income of 858 million euros resulting from the capital increase of September 20, 2005 with the simultaneous conversion of the Mandatory Convertible Facility. The income represents the difference between the subscription price of the new shares issued and the stock market price of the shares at the subscription date, net of issuance costs. I In 2005, net impairment losses recognised on investments totalled 431 million euros, mainly due to losses from the investments in Fiat Partecipazioni S. p. A. (811 million euros connected mainly to the losses of Fiat Auto), Teksid S. p. A. , Comau S. p. A. and 234 Financial Review of Fiat S. p. A. The income tax revenue of 26 million euros is the net result of the remuneration for the tax loss brought into the national tax consolidation by Fiat S. p. A. in 2006 to offset the income reported by the Group’s Italian companies, and the IRAP charge recognised for the period. Income tax expenses of 279 million euros in 2005 consisted of the reversal of deferred tax assets of 277 million euros, recognised in the financial statements at December 31, 2004 in relation to the settlement subsequently made with General Motors for the termination of the Master Agreement. Financial Review of Fiat S. p. A. 235 Balance Sheet Highlights of the Parent Company’s Balance Sheet are illustrated in the following table: (in millions of euros) Non-current assets – of which: Investments Working capital Total net invested capital Stockholders’ equity Net debt (liquid funds) At December 31, 2006 At December 31, 2005 14,559 14,500 167 14,726 10,374 4,352 5,168 5,118 303 5,471 7,985 (2,514) Current financial payables consist of the overdraft with the subsidiary Fiat Finance S. p. A. and short-term financing received from that company, as well as payables to factoring companies for advances on receivables. Non-current financial payables consist almost entirely of loans repayable in the 2010-2013 period granted by the subsidiary Fiat Finance S. p. A. at market rates as part of the recapitalisation of subsidiaries discussed above. At December 31, 2005 financial receivables related to short-term financing of 2,700 million euros granted to the subsidiary Fiat Finance S. p. A. and due in 2006, and to cash deposited on the current account held with that company. For a more complete analysis of cash flows, reference should be made to the Statement of Cash Flows set out on the following pages as part of the statutory financial statements of the Parent Company Fiat S. p. A. Reconciliation between the Parent Company’s equity and its result for the year with those of the Group Non-current assets mainly include investments in the relevant subsidiaries of the Group. The net increase of 9,382 million euros in investments as compared to December 31, 2005 stems from net write-ups arising from the reversal of previously recognised impairment losses and recapitalisations of 6,361 million euros carried out during the year in the subsidiaries Fiat Partecipazioni S. p. A. (6,000 million euros), Fiat Netherlands Holding N. V. (121 million euros) and Comau S. p. A. (240 million euros), in order to re-balance the equity structure inside the Group and cover losses, as well as the re-purchase from Mediobanca S. . A. of 28. 6% of the shares of Ferrari S. p. A. (893 million euros) upon exercise of the call option provided for in the 2002 agreements, which brought the investment to an 85% stake. Working capital, which totalled 167 million euros, consists of inventories net of advances received, trade, tax and employee receivables/payables, other receivables/payables and pro visions. The 136 million euro decrease over December 31, 2005 is mainly attributable to the refund of VAT receivables by the Tax Authorities. Stockholders’ equity at December 31, 2006 totalled 10,374 million euros, reflecting an increase of 2,389 million euros as compared to December 31, 2005 due to the positive result of the year (2,343 million euros) and other minor changes (including 28 million euros resulting from marking to market the fair value carrying amount of the Mediobanca shareholding). Pursuant to the Consob Communication of July 28, 2006, set out below is a reconciliation between the Parent Company’s equity at December 31, 2006 and its result for the year then ended with those of the Group (Group interest). (in millions of euros) Stockholders’ equity at December 31, 2006 Financial Statements of Fiat S. p. A. Elimination of the carrying amounts of consolidated investments and the respective dividends from the financial statements of Fiat S. p. A. Elimination of the reversal of impairment losses (net of recognised impairment losses) of consolidated investments Equity and results of consolidated subsidiaries Consolidation adjustments: Elimination of intercompany profits and losses on the sale of investments Elimination of intercompany profits and losses in inventories and fixed assets and other adjustments Consolidated financial statements (Group interest) 2006 Net result 10,374 2,343 14,211) – 13,404 (346) (2,099) 1,229 – (205) 9,362 (41) (21) 1,065 For a more complete analysis of the changes in stockholders’ equity, reference should be made to the relevant table set out in the following pages as part of the statutory financial statements of the Parent Company Fiat S. p. A. Net debt totalled 4,352 million euros at December 31, 2006 compared with net liquid funds of 2,514 million euros at December 31, 2005. The use of the liquid funds balance at the beginning of the year and the subsequent accumulation of debt are the consequence of the previously mentioned recapitalisations of subsidiaries and purchase of Ferrari S. . A. shares. A breakdown of net debt is illustrated in the following table: (in millions of euros) Financial receivables, cash and cash equivalents Current financial payables Non-current financial payables Net debt (net liquid funds) 236 Financial Review of Fiat S. p. A. At December 31, 2006 At December 31, 2005 (85) 1,627 2,810 4,352 (3,076) 557 5 (2,514) Financial Review of Fiat S. p. A. 237 Income Statement (in euros) Dividends and other income from investments (Impairment losses) reversal of impairment losses of investments Gains (losses) on the disposal of investments Other operating income Personnel costs Other operating costs Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Result before taxes Income taxes Result from continuing operations Result from discontinued operations Net result Balance Sheet (*) Note 2006 2005 (1) 362,418,522 2,099,350,000 425,380 79,238,202 (57,899,516) (141,006,254) – (24,846,809) – 2,317,679,525 (25,695,447) 2,343,374,972 – 2,343,374,972 7,713,904 (430,788,686) (1,300,134) 72,853,610 (60,027,274) (121,360,013) 1,133,110,377 (61,685,499) 857,636,269 1,396,152,554 278,827,554 ,117,325,000 – 1,117,325,000 (2) (3) (4) (5) (6) (7) (8) (9) (10) (*) Pursuant to Consob resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Income Statement of Fiat S. p. A. are included in the specific income statement schedule reported in the following pages and also provided in the comments of the single items and in Note 30. (*) (in euros) ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total Non-current assets Current assets Inventories Trade receivables Current financial receivables Other current receivables Cash and cash equivalents Total Current assets Assets held for sale TOTAL ASSETS STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result Total Stockholders’ equity Non-current liabilities Provisions for employee benefits and other non-current provisions Non-current financial payables Other non-current liabilities Deferred tax liabilities Total Non-current liabilities Current liabilities Provisions for employee benefits and other current provisions Trade payables Current financial payables Other payables Total Current liabilities Liabilities held for sale TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES Note At December 31, 2006 At December 31, 2005 (11) 771,530 37,252,689 14,499,594,748 20,134,319 1,573,473 – 14,559,326,759 675,599 39,658,553 5,117,531,801 5,335,175 4,501,747 – 5,167,702,875 – 154,692,452 84,173,202 626,428,489 608,105 865,902,248 – 15,425,229,007 – 215,652,499 3,075,893,885 799,919,053 95,235 4,091,960,672 – 9,259,663,547 6,377,257,130 1,540,856,410 22,590,857 446,561,763 24,138,811 6,134,851 (553,411,863) (24,138,811) 162,764,566 27,399,708 2,343,374,972 10,373,528,394 6,377,257,130 681,856,410 22,590,857 446,561,763 27,709,936 334,633 (811,736,863) (27,709,936) 134,267,390 16,102,522 1,117,325,000 7,9 84,558,842 18,104,487 2,810,029,000 20,000,576 3,438,000 2,851,572,063 29,170,653 5,262,000 16,861,109 – 51,293,762 26,790,951 184,660,883 1,627,429,902 361,246,814 2,200,128,550 – 15,425,229,007 30,990,501 385,182,033 557,382,830 250,255,579 1,223,810,943 – 9,259,663,547 (12) (13) (14) (15) 10) (27) (16) (17) (18) (19) (20) (21) (22) (23) (10) (24) (25) (26) (27) (*) Pursuant to Consob resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Balance Sheet of Fiat S. p. A. are included in the specific balance sheet schedule reported in the following pages and also provided in the comments of the single items and in Note 30. 238 Fiat S. p. A. Financial Statements at December 31, 2006 Fiat S. p. A. Financial Statements at December 31, 2006 239 Statement of Changes in Stockholders’ Equity Statement of Cash Flows (in thousands of euros) 2006 2005 (in thousands of euros) A) Cash and cash equivalents at beginning of period B) Cash flows from (used in) operating activities during the period: Net result for the period Amortisation and depreciation Non-cash gain from extinguishment of the Mandatory Convertible Facility Non-cash stock option costs (Impairment losses) reversals of impairment losses of investments Capital losses/gains on the disposal of investments Change in provisions for employee benefits and other provisions Change in deferred taxes Change in working capital Total C) Cash flows from (used in) investment activities: Investments: – Recapitalisations of subsidiaries – Acquisitions Other investments (tangible and intangible assets and other financial assets) Proceeds from the sale of: – Investments – Other non-current assets (tangible, intangible and other) Total D) Cash flows from (used in) financing activities: Change in current financial receivables Change in non-current financial payables Change in current financial payables Capital increase Sale of treasury stock Dividend distribution Total E) Total change in cash and cash equivalents F) Cash and cash equivalents at end of period 495 325 2,343,375 2,882 – 11,297 (2,099,350) (329) 7,990 3,438 151,872 421,175 1,117,325 2,918 (859,000) 10,041 430,789 (93) ,100 277,000 (76,028) 905,052 Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result for the period Total Stockholders’ equity At December 31, 2004 Capital increase for conversion of the Mandatory Convertible Facility 4,918,113 – 22,591 446,562 26,413 1,632 (813,435) (26,413) 74,397 6,062 2,141,000 Valuation of stock option plans and other changes Net result for the period At December 31, 2005 10,442 1,117,325 1,117,325 ,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 Valuation of stock option plans and other changes Net result for the period At December 31, 2006 1,459,144 681,856 4,655,922 Fair value adjustments recognised directly in equity 1,297 (1,297) 1,698 (1,297) 59,870 10,041 59,870 (*) (*) Treasury stock at December 31, 2005 consists of 4,331,708 ordinary shares for a total nominal value of 21,659 thousand euros. (6,361,126) (919,412) (15,529) (165,193) – (1,808) 2,357 313 (7,293,397) (a) – 261 (166,740) 2,991,721 2,804,767 1,070,047 – 5,800 – 6,872,335 113 608 (753,091) – 14,548 – 401 – 7 38,142) 170 495 At December 31, 2005 Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result for the period Total Stockholders’ equity 6,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 Allocation of the net result for the prior period Fair value adjustments recognised directly in equity 859,000 (3,571) 5,800 258,325 3,571 28,497 11,297 (1,117,325) – 28,497 2,343,375 2,343,375 7,097 6,377,257 1,540,856 22,591 446,562 24,139 6,135 (553,412) (24,139) (*) 162,764 27,400 2,343,375 10,373,528 (*) Treasury stock at December 31, 2006 consists of 3,773,458 ordinary shares for a total nominal value of 18,867 thousand euros. (a) In 2005, the item â€Å"Capital increase† is shown net of the repayment of the Mandatory Co nvertible Facility (3 billion euros), as it did not give rise to cash flows. Statement of total recognised income and expenses for 2006 and 2005 (in thousands of euros) Gains (losses) recognised directly in the fair value reserve (investments in other companies) Gains (losses) recognised directly in equity Transfer from cash flow hedge reserve Net result for the period Total of recognised income (expense) for the period 240 Fiat S. p. A. Financial Statements at December 31, 2006 2006 2005 28,497 28,497 – 2,343,375 2,371,872 58,958 58,958 912 1,117,325 1,177,195 Fiat S. p. A. Financial Statements at December 31, 2006 241 Income Statement Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 pursuant to Consob Resolution No. 15519 of July 27, 2006 (in thousands of euros) Dividends and other income from investments (Impairment losses) reversal of impairment losses of investments Gains (losses) on the disposal of investments Other operating income Personnel costs Other operating costs Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Result before taxes Income taxes Result from continuing operations Result from discontinued operations Net result 242 Fiat S. p. A. Financial Statements at December 31, 2006 Note 2006 (1) 362,419 2,099,350 425 79,238 (57,900) (141,006) – (24,847) – 2,317,679 (25,696) 2,343,375 – 2,343,375 (2) (3) (4) (5) (6) (7) (8) (9) (10) of which Related parties (Note 30) 33,200 (51,901) (17,765) 2005 7,714 430,789) (1,300) 72,854 (60,027) (121,360) 1,133,110 (61,685) 857,636 1,396,153 278,828 1,117,325 – 1,117,325 of which Related parties 24,256 (54,477) 106,259 (in thousands of euros) ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total Non-current asset s Current assets Inventories Trade receivables Current financial receivables Other current receivables Cash and cash equivalents Total Current assets Assets held for sale TOTAL ASSETS STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result Total Stockholders’ equity Non-current liabilities Provisions for employee benefits and other non-current provisions Non-current financial payables Other non-current liabilities Deferred tax liabilities Total Non-current liabilities Current liabilities Provisions for employee benefits and other current provisions Trade payables Current financial payables Other payables Total Current liabilities Liabilities held for sale TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES Note (11) (12) (13) (14) (15) (10) (27) (16) (17) (18) (19) At December 31, 2006 772 37,253 14,499,595 20,134 1,573 – 14,559,327 – 154,692 84,173 626,429 608 865,902 – 15,425,229 of which Related parties (Note 30) 10,029 2,408 84,173 146,908 At December 31, 2005 of which Related parties 676 39,658 5,117,532 5,335 4,502 – 5,167,703 5,262 – 215,652 3,075,894 799,920 495 4,091,961 – 9,259,664 7,687 3,075,894 106,007 (20) 6,377,257 1,540,856 22,591 446,562 24,139 6,135 (553,412) (24,139) 162,765 27,400 2,343,375 10,373,529 21) (22) (23) (10) (24) (25) (26) (27) 18,104 2,810,029 20,001 3,438 2,851,572 26,791 184,661 1,627,430 361,246 2,200,128 – 15,425,229 6,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 2,810,029 – 17,801 1,405,554 319,078 29,171 5,262 16,861 – 51,294 30,991 38 5,182 557,383 250,255 1,223,811 – 9,259,664 5,262 2,622 4,975 434 215,379 Fiat S. p. A. Financial Statements at December 31, 2006 243 Notes to the Financial Statements Principal activities Fiat S. p. A. (the â€Å"Company†) is a corporation organised under the laws of the Republic of Italy and is the Parent Company f the Fiat Group, holding investments, either directly or indirectly through subholdings, in the capital of the parent companies of business Sectors in which the Fiat Group operates. The head office of the company is in Turin, Italy. The financial statements of Fiat S. p. A. are prepared in euros which is the currency of the economic environment in which the company operates. The Balance Sheet and Income Statement are presented in euros, while the Statement of Cash Flows, the Statement of Changes in Stockholders’ Equity, the Statement of Total Recognised Income and Expenses and the amounts stated n the Notes are presented in thousands of euros, unless otherwise stated. As the Parent Company, Fiat S. p. A. has additionally prepared the consolidated financial statements of the Fiat Group at December 31, 2006. Significant accounting policies Basis of preparation The 2006 financial statements are the separate financial statements of the Parent Company, Fiat S. p. A. , and have been prepared in accordance with the International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) and adopted by the European Union. The designation â€Å"IFRS† also includes all the revised International Accounting Standards (â€Å"IAS†) and all the interpretations of the International Financial Reporting Interpretations Committee (â€Å"IFRIC†), previously known as the Standing Interpretations Committee (â€Å"SIC†). In compliance with European Regulation no. 1606 of July 19, 2002, starting from 2005 the Fiat Group has adopted the International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) for the preparation of its consolidated financial statements. On the basis of national legislation implementing that Regulation, he annual statutory accounts of the Parent Company Fiat S. p. A. as of December 31, 2006 have been prepared for the first time also using those accounting standards. As a consequence the Parent Company Fiat S. p. A. is presenting its financial statements for 2006 and its comparative figures fo r the prior year in accordance with IFRS. The accounting principles applied are the same as those used in the preparation of the Company’s Balance Sheets at January 1, 2005 and December 31, 2005 and its 2005 Income Statement in accordance with IFRS; these statements are provided in the Appendix attached to these Notes, to which reference should be made. The Appendix provides reconciliations of the Company’s equity and Income Statement reported under its previous accounting principles (Italian accounting principles) and IFRS, together with Notes, as required by IFRS 1 – Firsttime adoption of IFRS. Certain reclassifications have been made with respect to the figures published in the Appendix to the 2006 First-half Report. The comparative figures for the previous period were consequently reclassified. These reclassifications have no effect on the net result or stockholders’ equity. The financial statements have been prepared on a historical cost basis, modified as required for measuring certain financial instruments. Format of the financial statements Fiat S. p. A. presents an Income Statement using a classification based on the nature of its revenues and expenses given the type of business it performs. The Fiat Group presents a Consolidated Income Statement using a classification based on function, as this is believed to be more representative of the format selected for managing the business sectors and for internal reporting purposes and is coherent with international practice in the automotive sector. Fiat S. p. A. has elected to present current and non-current assets and liabilities as separate classifications on the face of the Balance Sheet. A mixed format has been selected by the Fiat Group for the Consolidated Balance Sheet, as permitted by IAS 1, presenting only current and non-current assets separately. This decision has been taken in view of the fact that both companies carrying out industrial activities and those carrying out financial activities are consolidated in the 244 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements Group’s financial statements. The investment portfolios of financial services companies are included in current assets in the Consolidated Balance Sheet, as the investments will be realised in their normal operating cycle. Financial services companies, though, obtain funds only partially from the market: the remaining are obtained through the Group’s treasury companies (included in industrial companies), which lend funds both to industrial Group companies and to financial services companies as the need arises. This financial service structure within the Group means that any attempt to separate current and non-current debt in the Consolidated Balance Sheet cannot be meaningful. This has no effect on the presentation of the liabilities of Fiat S. p. A. Assets are depreciated using the policies and rates described below. Lease arrangements in which the lessor maintains substantially all the risks and rewards incidental to the ownership of an asset are classified as operating leases. Lease payments under an operating lease are recognised as an expense on a straightline basis over the lease term. Depreciation Depreciation is charged on a straight-line basis over the estimated useful lives of assets as follows: The statement of cash flows has been prepared using the indirect method. In connection with the requirements of the Consob Resolution No. 15519 of July 27, 2006 as to the format of the financial statements, specific supplementary Income Statement and Balance Sheet formats have been added for related party transactions, so as not to compromise the overall reading of the statements. Annual depreciation rate Buildings Plant Furniture Fixtures Vehicles 3% 10% 12% 20% 25% Land is not depreciated. Intangible assets Impairment of assets Purchased and internally-generated intangible assets are ecognised as assets in accordance with IAS 38 – Intangible Assets, where it is probable that the use of the asset will generate future economic benefits and where the cost of the asset can be determined reliably. The company reviews at least annually the recoverability of the carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries and associates, in or der to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the carrying amount of an asset is written down to its recoverable amount. The recoverable amount of an asset is the higher of fair value less costs to sell and its value in use. Intangible assets with finite useful lives are measured at purchase or manufacturing cost, net of amortisation charged on a straight-line basis over their estimated useful lives and net of any impairment losses. Property, plant and equipment Cost Property, plant and equipment is measured at purchase or manufacturing cost, net of accumulated depreciation and any impairment losses, and is not revalued. Subsequent expenditures are capitalised only if they increase the future economic benefits embodied in the asset to which hey relate. All other expenditures are expensed as incurred. In particular, in assessing whether investments in subsidiaries and associated companies have been impaired, their recoverable amount has been taken as their value in use, as the investments are not listed and a market value (fair value less costs to sell) cannot be reliably measured. The value in use of a n investment is determined by estimating the present value of the estimated cash flows expected to arise from the results of the investment and from the estimated value of its ultimate disposal, in line with the requirements of paragraph 33 of IAS 28. Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 245 When an impairment loss on assets subsequently reverses or decreases, the carrying amount of the asset or cash-generating unit is increased up to the revised estimate of its recoverable amount, but not in excess of the carrying amount that would have been recognised had no impairment loss been recorded. The reversal of an impairment loss is recognised immediately in income. Measurement Financial instruments Investments in subsidiaries and associates are tested for mpairment annually and if necessary more often. If there is any evidence that these investments have been impaired, the impairment loss is recognised directly in the Income Statement. If the company’s share of losses of the investee exceeds the carrying amount of the investment and if the company has an obligation to respond for these losses, the company’s interest is reduced to zero and a liability is recogn ised for its share of the additional losses. If the impairment loss subsequently no longer exists it is reversed and the reversal is recognised in the income statement up o the limit of the cost of the investment. Presentation Financial instruments held by the company are presented in the Balance Sheet as described in the following: I Non-current assets: Investments, Other financial assets, Other non-current assets. I Current assets: Trade receivables, Current financial receivables, Other current receivables, Cash and cash equivalents. I Non-current liabilities: Non-current financial payables, Other non-current liabilities. Current liabilities: Trade payables, Current financial payables (including payables for advances on the sale of receivables), Other payables. I The item â€Å"Cash and cash equivalents† consists of cash and deposits with banks, units with liquidity funds and other highly traded securities that are readily convertible to cash and which are subject to an insignificant risk of changes in value. The liability relating to financial guarantee contracts is included in Non-current financial payables. The term financial guarantee contracts refers to contracts under which the company guarantees to make specific payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. The present value of the related receivable for any outstanding commissions is classified in Non-current financial assets. Investments in subsidiaries and associates are stated at cost adjusted for any impairment losses. The excess on acquisition of the purchase cost and the share acquired by the company of the investee company’s net assets measured at fair value is, accordingly, included in the carrying value of the investment. Investments in other companies, comprising non-current financial assets that are not held for trading (available-forsale financial assets), are initially measured at fair value. Any subsequent profits and losses resulting from changes in fair value, arising from quoted prices, are recognised directly in equity until the investment is sold or is impaired; the total profits and losses recognised in equity up to that date are recognised in the Income Statement for the period. Minor investments in other companies for which a market quotation is not available are measured at cost, adjusted for any impairment losses. Other financial assets for which the company has the intent o hold to maturity are recognised on the trade date and are measured at purchase price (being representative of fair value) on initial recognition in the Balance Sheet, inclusive of transaction costs other than in respect of assets held for trading. These assets are subsequently measured at amortised cost using the effective interest method. 246 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements Other non-current assets, Trade receivables, Curre nt financial receivables and Other current receivables, excluding assets eriving from derivative financial instruments and all financial assets for which quotations on an active market are not available and whose fair value cannot be reliably determined are measured at amortised cost using the effective interest method if they have a pre-determined maturity. If financial assets do not have a predetermined maturity they are measured at cost. Receivables with a due date beyond one year that are non-interest bearing or on which interest accrues at below market rate are discounted to present value using market rates. Valuations are performed on a regular basis with the purpose of verifying if there is objective evidence that a financial asset, taken on its own or within a group of assets, may have been impaired. If objective evidence exists, the impairment loss is recognised as a cost in the Income Statement for the period. Non-current financial payables, Other non-current liabilities, Trade payables, Current financial payables and Other payables are measured on initial recognition at fair value (normally represented by the cost of the transaction), including any transaction costs. Financial liabilities are subsequently measured at amortised cost using the effective interest method, except for derivative financial instruments and liabilities for financial guarantee contracts. Financial liabilities hedged by derivative instruments are measured according to the hedge accounting criteria applicable to fair value hedges; gains and losses resulting from subsequent measurement at fair value, caused by fluctuations in interest rates, are recognised in the Income Statement and are set off by the effective portion of the gain or loss resulting from the respective valuation of the hedging instrument at fair value. Liabilities for financial guarantee contracts are measured at the higher of the estimate of the contingent liability (determined in accordance with IAS 37 – Provisions, Contingent Liabilities and Contingent Assets) and the amount initially recognised less any amount released to income over time. Derivative financial instruments Derivative financial instruments are used solely for hedging purposes, for the purpose of reducing foreign exchange rate risk, interest rate risk and the risk of fluctuations in market prices. In accordance with the conditions of IAS 39, derivative inancial instruments qualify for hedge accounting only when, at the inception of the hedge, there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, the effectiveness can be reliably measured and the hedge is actually highly effective throughout the financial reporting periods for which it was designated. All derivative financial instruments are measured at fair value, in accordance with IAS 39. When financial instruments have the characteristics to qualify for hedge accounting the following accounting treatment is dopted: I Fair value hedge – If a derivative financial instrument is designated as a hedge of the exposure to changes in fair value of a recognised asset or liability that is attributable to a particular risk that could affect the Income Statement, the gain or loss resulting from remeasuring the hedging instrument at fair value is recognised in the Income Statement. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognised in the Income Statement. Cash flow hedge – If a derivative financial instrument is esignated as a hedge of the exposure to variability in the future cash flows of a recognised asset or liability or a highly probable forecast transaction that could affect the Income Statement, the effective portion of the ga in or loss on the derivative financial instrument is recognised directly in equity. The cumulative gain or loss is reversed from equity and reclassified into the Income I Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 247 Statement in the period in which the hedged transaction is recognised. Gains or losses associated with a hedge (or part of a hedge) which is no longer effective are immediately recognised in the Income Statement. If a hedging instrument or a hedging relationship is terminated, but the transaction being hedged has not yet occurred, the cumulative gains and losses recognised in equity until that time are recognised in the Income Statement at the time the transaction occurs. If a hedged transaction is no longer considered probable, the unrealised gains and losses that remain in equity are immediately recognised in the Income Statement. ividing the costs incurred by the total costs forecast for the whole construction). Any losses expected to be incurred on contracts are fully recognised in the Income Statement and as a reduction in contract work in progress when they become known. If hedge accounting cannot be used, the gains and losses resulting from changes in the measurement of the derivative financial instrument at fair value are immediately recognised in the Income Statement. Sales of receivables Inventory Inventory consists of work in progress on specific contracts and in particular relates to long-term construction contracts signed by Fiat S. . A. with Treno Alta Velocita – T. A. V. S. p. A. under which Fiat S. p. A. as general contractor performs the coordination, organisation and management of the work. Work in progress refers to activities carried out directly and is measured by applying the percentage of completion to the contract fee, thereby recognising the margins deriving from the work performed to date. The cost to cost method is used to determine the percentage of completion of a contract (by Any advances received from customers for services performed are presented as a reduction in inventory. If the amount of advances exceeds inventory, the excess is recognised as Advances in the item Other payables. Receivables sold in factoring operations are derecognised from assets if and only if the risks and rewards relating to their ownership have been substantially transferred to the buyer. Receivables sold with recourse and without recourse that do not satisfy this condition remain in the company’s Balance Sheet even if they have been sold from a legal point of view; in this case, an obligation of the same amount is recognised as a liability for the advances received. Assets held for sale Any amounts in this item will consist of non-current assets (or assets and liabilities included in disposal groups) whose carrying amount will be recovered principally through a sale transaction rather than through continuing use. Assets held for sale (or disposal groups) are measured at the lower of their carrying amount and fair value less disposal costs. Employee benefits The expense related to the reversal of discounting pension obligations for defined benefit plans are reported separately as part of the Group’s financial expense. Post-employment plans The company provides pension plans and other postemployment plans to its employees. The pension plans for which the company has an obligation under Italian law are defined contribution plans, while the other post-employment plans, for which the company generally has an obligation under national collective bargaining agreements, are defined benefit plans. The payments made by the company for defined contribution plans are recognised in the Income Statement as a cost when incurred. Defined benefit plans are based on the employees’ working lives and on the salary or wage received by the employee over a predetermined period of service. The employees’ severance indemnity (trattamento di fine rapporto or TFR) is considered to be a defined benefit plan and is accounted for in the same way as other defined benefit plans. The company’s obligation to fund defined benefit plans and the annual cost recognised in the Income Statement are determined by independent actuaries using the projected unit credit method. The portion of net actuarial gains and losses at the end of the previous reporting period that exceeds the greater of 10% of the present value of the defined benefit bligation and 10% of the fair value of the plan assets at that date is deferred and recognised over the remaining working lives of the employees (the â€Å"corridor method†); the portion of actuarial gains and losses that does not exceed this threshold is deferred. In the context of IFRS first-time adoption, the company elected to recognise all cumulative actuarial gains and losses at January 1, 2004 (date of first-time adoption of IFRS by the Fiat Group), although it has adopted the corridor method for those arising subsequently. 248 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements The liability for obligations arising under defined benefit plans and due on termination of the employment contract represents the present value of the obligation adjusted by actuarial gains and loses deferred as the result of applying the corridor approach and by past service costs for employee service in prior periods that will be recognised in future years. Other long-term benefits The accounting treatment of other long-term benefits is the same as that for post-employment benefit plans except for the fact that actuarial gains and losses and past service costs are fully ecognised in the Income Statement in the year in which they arise and the corridor method is not applied. Equity compensation plans The company provides additional benefits to certain members of top management and to certain employees through equity compensation plans. Under IFRS 2 – Share-based Payment, these plans are a component of employee remuneration whose cost is measured by the fair value of the stoc k options at the grant date recognised in the Income Statement on a straight-line basis from the grant date to the vesting date, with a counter entry to equity. Changes in fair value after the grant date do not have any effect on the initial measurement. The company has applied the transitional provisions of IFRS 2 and as a result the Standard is applicable to all stock option plans granted after November 7, 2002 but which had not yet vested by January 1, 2005, the effective date of the Standard. Detailed disclosures are also provided for plans granted before that date. Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 249 Taxes Use of estimates The company recognises provisions when it has a legal or constructive obligation to third parties, when it is probable that the settlement of the obligation will require the outflow of resources and when a reliable estimate can be made for the amount of the obligation. The tax charge for the period is determined on the basis of prevailing laws and regulations. Income taxes are recognised in the Income Statement other than those relating to items credited or charged directly to equity, in which case income taxes are also recognised directly in equity. Changes in estimates are recognised in the Income Statement for the period in which the change occurs. Deferred tax assets and liabilities are determined on the basis of all the temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its corresponding tax basis. Deferred tax assets resulting from unused tax losses and temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which they can be utilised. Current and deferred income taxes and liabilities are offset when there is a legally enforceable right to offset. Deferred tax assets and liabilities are measured by using the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. The preparation of financial statements and related disclosures that conform to IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and iabilities at the date of the financial statements. Actual results could differ from those estimates. Estimates are used in accounting for depreciation and amortisation, impairment losses and reversals of impairment losses on investments, the margins earned on construction contracts, employee benefits, taxes and provisions. Estimates and assumptions are reviewed periodically and the effects of any changes are recognised in the period in which the estimate is revised if the revision ffects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Provisions Treasury stock The cost of purchase of treasury stock is accounted for as a reduction of equity. The effects of any subsequent transactions with those shares are similarly recognised directly in equity. Dividends received and receivable Dividends received and receivable from investments are recognised in the Income Statement when the right to receive the payment of this income is established and only if declared from post-acquisition net income. If dividends are declared from pre-acquisition net income, those dividends are deducted from the cost of the investment. Revenue recognition Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and when the amount of revenue can be measured reliably. Revenue is presented net of any adjusting items. Revenue from services and revenue from construction contracts is recognised by reference to the stage of completion (the percentage of completion method). Revenues arising from royalties are recognised on an accrual basis in accordance with the terms of the relevant agreement. Financial income and expenses Financial income and expenses are recognised and measured in the Income Statement on an accrual basis. Fiat S. p. A. and almost all its Italian subsidiaries have elected to take part in the national tax consolidation programme pursuant to articles 117/129 of the Consolidated Income Tax Act (T. U. I. R. ); the election has been made for a three year period beginning in 2004. Fiat S. p. A. acts as the consolidating company in this programme and calculates a single taxable base for the group of companies taking part, thereby enabling benefits to be realised from offsetting taxable income and tax losses in a single tax return. Each company participating in the consolidation transfers its taxable income or tax loss to the consolidating company and Fiat S. p. A. recognises a receivable from that company for the amount of IRES corporate income tax paid over on its behalf. In the case of a company How to cite Citibank Performance Evaluation Case Study, Free Case study samples