Social Aspects of Down Syndrome Research Paper Example | Topics and Well Written Essays - 1250 words

Social Aspects of Down Syndrome - Research Paper Example This is a curable disease that if identified in the early stages after birth can be managed properly to later stages in life. The different aspects for children and adults, speech, relationships with groups and how certain environments influence social skills and mental capabilities are vital signs to be considered critically (Royston 2005). This includes the developments of friendships, interpersonal social skills, leisure and play skills, self-help skills and independence and socially recommended behavior. Social skills for being independent, making friends, searching work and becoming independent through social confidence and competence is vital than academic skills. The ability to understand others feelings, emotions, and their behavior lead to success in social relations. For both children and adults suffering from Down syndrome, social understanding starting in infancy is considered as strength. The none verbal cues like voice tonal variation, facial expressions, posture and gestures indicate how someone feels, that in the event when one does not understand the spoken words used, they are suppose to pick the major messages about feelings and thus behave appropriately. Children and adults with strong social skills and empathy suffering from Down syndrome tend to enjoy better social behavior and understanding than t heir counter parts with the same stage of communication delays. On the other hand, this understanding of others behavior also enables Down syndrome children to be naughty since they have knowledge of how to provoke the reactions of the others (Evans 2009). The social development of infants with Down syndrome is influenced by their experiences in the environment by factors like family, society and schools, their tempers and the treatment they receive from others. Different behaviors in children are experienced according to their immediate environments, for instance, where a child notices negative emotions

Advantages and disadvantages of the film medium for Surrealism Essay

Advantages and disadvantages of the film medium for Surrealism - Essay Example The essay "Advantages and disadvantages of the film medium for Surrealism" discusses surrealism and the film medium. Looking at examples of surrealistic film work can provide a relational discussion of the Manifesto of Surrealism and the achievements of the artists who used film as a medium. Surrealism blossomed from the remnants of the Dada movement. Surrealism emerged to elevate objects into new imaginings of reality, recreating the world to express thoughts that were unfettered by reason and order, but free to be associated through related and unrelated imaginings. Politically, Surrealists were typically to the extreme left, embracing communism and anarchist principles in search of ways in which to liberate man from the chains of capitalistic points of view and to elevate the human spirit beyond the needs for material gain over others. If one clear message is to be gained from the overall movement and the visuals that were represented by its members, it might be said to say that à ¢â‚¬â„¢the world is not as it seems’. It is the common interpretation of the world that is challenged by the Surrealists. At a time when the entire world was struggling with the interpretation of how life should be viewed and lived, the Surrealists revealed that the perception of the world did not always reflect its reality. Therefore, to reflect reality was to, in truth, twist it until it revealed a deeper truth or an unimagined sense of how the world worked. In a work of surrealism real objects become pawns.

PR And New Media Essay Example for Free

PR And New Media Essay Public relations (PR) are the management of internal and external communication environment of an organization to generate and sustain a positive image and goodwill. It often involves in activities like popularizing successes or exaggerating success, rejecting failures or hiding the weakness of company, announcement of new promotion campaigns, detailing new strategies involving public, media and investors. It should be mentioned that Public relations is also viewed as an art or technique to endorse, encourage, sponsor goodwill in the external environment like media and public. Thus, it is essential to incorporate a proper campaign related to public health program in the context of public health like the one the campaign targeted in this case: An anti-smoking health campaign for the UK department of Health, aimed at encouraging 35-45 year old smokers, primarily in disadvantaged areas, to access NHS smoking cessation services. This group is traditionally considered difficult to reach. Public health relates to all the threats for the general Health of the society, focusing on the resident’s and non-resident’s health analysis. Health can be defined as complete body, mind and social welfare, but not simply the failure to be suffering from a disease or infirmity. It can be stated that diet, religious nourishment and brain balance, determine someone’s health. Health can be environmental, epidemiological, and professional/Occupational. The nation’s resources should be spent in saving lives and improving living conditions. Research and development on public health is necessary to determine the cause of disease and cure or prevention for the diseases. Thus, a public health campaign is essential for UK in the context of Anti smoking awareness. Public relation is an important management function of any organization and in this issue of anti smoking campaign. It dictates the communication environment be it internal or external, of an organization. It is often done to create and maintain an optimistic image and goodwill of the organization. Public relation is also viewed as a process to support, encourage and sponsor goodwill. It effects in not only the external environment like media, investors and public but also the internal environment like employee and investors. As Mr. Robert L. Heath said Public Relations is a set of management, supervisory, and technical functions that foster an organizations ability to strategically listen to, appreciate, and respond to those persons whose mutually beneficial relationships with the organization are necessary if it is to achieve its missions and values. (Wiki, 2007) With changing world perception, public relation starts from collection of data, identifying challenges and problem areas, and finally making strategies for implementing goals. So when it comes to health it Public Relation becomes more so important. It is not only health awareness but also controlling various health factors like cancer, tropical diseases etc. Here methodologies used for Public Relations are press releases, press kits, advertisements in newspaper, satellite feeds, web casts, wire service distribution of information and internet placement. Other indirect tools can be include entertainment product placement (television, events, celebrity), product launches, press conferences, media seminars, producing events, speechwriting and establishing partnerships. The most important aspect here is use of right media for right purpose. Anti-smoking health campaign for the UK department of Health One of the main challenges in facing the world is smoking. Every year hundreds of thousands of people around the world die from diseases caused by smoking, directly or indirectly. One in two lifetime smokers have been seen to die from this habit. Half of these deaths will occur in middle age usually in the age group of 35-45. Tobacco smoke itself is the reason of number of  cancers. The resultant mixture of nicotine and carbon monoxide, in each cigarette smoke can temporarily increase ones heart rate and blood pressure, straining the heart and blood vessels. This causes heart attacks and stroke. It slows your blood flow, cutting off oxygen to your feet and hands to the brain. Some smokers end up having their limbs amputated. Tar coats on lungs like soot in a chimney and causes cancer. A 20-a-day smoker on average breathes in up to a full cup (210 g) of tar in a year. Carbon monoxide can cause depletion of muscles, brain and body tissue of oxygen, making the whole body and especially the heart work harder. Over time, airways swell up and let less air into your lungs. Heart disease and strokes are seen to be more common among smokers than non-smokers. It also causes fat deposits to narrow and block blood vessels, which lead to heart attack. (QSS, 2007) The National Health Service (NHS) a publicly funded healthcare system in Great Britain provides healthcare to everyone normally resident in the UK. It is funded exclusively through income tax, and provides many services are free of charge to the patient. Other than normal healthcare NHS has been required to take on pro-active socially directive policies, for example, in respect of smoking and obesity. Here National Health Service can involve new media in its Public relation activities. The National Health Service of Great Britain has been using stop smoking clinics for quite some time now. It has been called a success after figures showed significant progress in disadvantaged areas. The study found 8.8% of smokers in poorer areas had quit at the four-week mark, compared with 7.8% elsewhere. The comparison is particularly relevant as smoking is a key factor in health inequalities with those from deprived backgrounds more likely to smoke. Smoking cessation clinics, offering counseling and treatment in the form of nicotine replacement therapy, were set up in 1999. (News.BBC, 2007) The age group of 35-45 for smokers is of particular interest to NHS. This age group primarily consists of new mothers and fathers to middle aged people. This age-group has been found particularly difficult to reach because of job related problems. In study it has been found children whose parents smoke during pregnancy or in the early years of childhood are more likely to smokers than those whose parents are not. This age group is also the most stressed among other groups leading or finding excuse in smoking. It has been found that quitting trends of smoking has been lower in populations in disadvantaged areas. NHS can use different methodologies with the help of new media to propagate these services. Disadvantaged areas or not internet and television are more or less available to most people on UK. On of the better techniques that can be use by NHS can be blogs, news feeds, social networking sites, news sites, patient review sites, experience or photo sharing sites, even games or interactive media. These can offer the latest insights to new technologies available for stop smoking. These pod casts can also be use to tell the participating audiences about camps going around and take updates from them about their current status of smoking habits on weekly basis as is normally done. This also ensures that the privacy for the participating audiences and even participate in some activities anonymously. NHS can optimize use of blogs and social networks for maximize positive exposure. It can harness the potential of the full range of new media channels like live-feeds, podcasts, life casts of smokers quitting smoking. Here patients can create their own content, writing their experiences of quitting; posting pictures and videos, and can also offer their experiences to other fellow counterparts. Patients can be allowed questions to a panel of elite professionals and gain valuable insights into how they wish to be cured and continue after the quit smoking exercise has been done. At the same time, evaluated results can also seen and effectively the impact of PR strategy with the help of Public Relation Strategy can found and if needed be altered. However, there is a significant advantage of the new media. New Media works best among a focus group of like-minded people. Visitors should be spreading the word to friends that will be interested in the topic, not to everyone else. Thus, in this context, the target audience (aged 35-45) would be accessed easily once the advertisement is properly carried out. When visitors are not even sure about the significance or meaning of targeting, how can they be made to act as advocates? The reward should be relevant to the target audience. The size of the reward should not be so large that customers resort to cheating. Again, the advertiser should control the response by ensuring that products are carried to specific groups interested in it. CNET regularly gives away technical content free to users. In return, subscribers need to take a link to CNET. This feature allows users to put up technical content in their websites. Participants in the program will naturally be placing the stories to visitors who will be concerned with trade or industry news. The relevance of the giveaway (free content) effortlessly brings in the target audience. The costs of improper planning, analysis and the wrong products can tip the scales instantaneously on a campaign. Though viral marketing is a relatively low cost advertising strategy, the wrong move could disable a company or product. A lot more is anticipated on this subject. However, to incorporate user-generated content into this communication plan it is important to process a well-formulated feedback plan from the visitors on the subject. For the purpose, a questioner on the subject would be presented and the response would collect, as it would prove to be the benchmark of this project and determinant of its success and failure. Nevertheless, a high amount of feedback returns would be almost synonymous for the success of this campaign. However, here is a shortcoming of the new media, it is the small working groups, and often numerous numbers of such sites can make difficultly for NHS. New Media tactics are designed to spread rapidly. One tells two friends who tell two others and so on till the numbers reach a highly critical mass. This is the same principle working in real time direct marketing programs. In the ambience of the web, growth is instant and so is the reaction. A good joke spreads to thousands in one day because it is so convenient to click Forward, and hit Send.   Such is the potential of a New Media program. We have often seen those â€Å"distress† messages operating similarly. When dealing with a web site the respondents might have to enter a site, registering, download a large file, buy things or request free deals. A 100-fold increase in traffic might result in just one day, providing the message is compelling enough and the proposition is motivating. More to the point is whether the advertiser’s server is ready to take this flood.   Is staff ready for this onslaught? If proactive plans are not in place, then the huge response will most likely end up in a backlash. However, other media programs would also be instrumental in the issue. Measures would be taken to fulfill the approach under various parameters. A multiple mode of public relation applications would be used like radio, print media, TV and live campaigns. Programs related to public heath would be aired on radio and TV to make the mass aware of the smoking hazard and the protection needed against these smoking related diseases. Live campaigns and kiosks would be incorporated in public spaces and within vulnerable communities to create awareness. Special units would also be prepared to persuade the health ministry with participants from all walks of life with possible influential backgrounds. It is important to create awareness both in the parameters of public and administrative strata and without the help of both the overall objectives of the public health program would not be fruitful. Conclusion In conclusion it can well be stated that crisis in western capitalism generated the operation of an interventionist welfare state has been resolved by transferring the burden of crisis to some groups among welfare state consumers, as earlier   discussion of the realignment of welfare policy in accordance to public healthcare programs formulation, specifically related to the anti-smoking issue. This shift to a theoretical model whereby the welfare state is seen as in process of ‘modernisation’ or as in ‘transition’ may well have supplanted earlier crisis theory at a time when the real crisis for the welfare state, in the case of public healthcare program formulation at least, may finally arrived. Bibliography: Croteau, D and Hoynes, W; (2003); Media Society: Industries, Images and Audiences (third edition) Pine Forge Press: Thousand Oakes Economist; (2007); Story; economist.com; Retrieved on 04.03.2008 from http://www.economist.com/surveys/displaystory.cfm?story_id=6794156 Flew, Terry; (2002); New Media: An Introduction; Oxford University Press, UK Manovich, Lev; (2001) The Language of New Media; MIT Press, Cambridge and London News.BBC; (2007); Health; news.bbc.co.uk; Retrieved on 04.03.2008 from http://news.bbc.co.uk/1/hi/health/7127193.stm QSS; (2007); Harmful Smoking Effects; quit-smoking-stop.com; Retrieved on 04.03.2008 from http://www.quit-smoking-stop.com/harmful-smoking-effects.html Wiki; (2007); Public Relations; wikipedia; Retrieved on 04.03.2008 from http://en.wikipedia.org/wiki/Public_relations

Consequences Of The Digital Divide Education Essay

Consequences Of The Digital Divide Education Essay The primary concern is exclusion; social and otherwise. Each year, being digitally connected becomes ever more critical to economic, educational, and social advancement. Those without the appropriate tools (in terms of PCs and Internet connectivity) and applicable skills will become increasingly disadvantaged. As ICT becomes ever more pervasive those elements of society without access will be further disenfranchised in terms of: Fewer employment opportunities Restricted access to information and support Increasingly basic facilities such as email, consumer services, financial services, etc. Reasons behind the Digital Divide At the most basic level the digital divide arises where individuals or groups of individuals have no or inadequate access to PCs connected to the Internet. It follows that addressing this problem by providing access should be a constructive measure in terms of reducing the divide. That being said the underlying causes of the divide are in all probability more complex. Research in the USA has identified the following issues: Income differences. There are wide disparities amongst income groups. The better off are far more likely to have PCs and Internet connections than others. Those with income in excess of $75K are 20 times more likely to have Internet access than those at the lowest income level. Education. The better educated are statistically more likely to have and use connected PCs. In particular those with college degrees or higher are ten times more likely to have access. Only 6.6% of people with an elementary school education or less use the Internet. Location. Rural areas relative to cities generally experience lower levels of connectivity. Rural areas in particular lag behind cities in terms of broadband access. Age. People over the age of 50 have been less likely to use PCs and the Internet. Less than 30% of this group were connected in 2000. Those over 50 and in employment are three times more likely to have access than individuals not in employment. Single parent families. Two parent families are more than twice as likely to have Internet access than single families. Further, the oportion in respect of female-headed single families in cities is significantly lower. Disabilities. Although 25% of the able bodied have never used a PC the proportion for the disabled rises to 60%. In general the disabled are half as likely to use PCs and have Internet access. Among those with a disability, people who have impaired vision and problems with manual dexterity have even lower rates of Internet access and are less likely to use a computer regularly than people with hearing and mobility problems. This difference holds in the aggregate, as well as across age groups. Race and ethnic groups. Large gaps exist regarding Internet penetration rates among households of different races and ethnic origins. Further, large gaps remain when measured against the National average for Internet penetration. Differences in income and education do not fully account for this facet of the digital divide. Estimates of what Internet access rates for this group would be had they had income and education levels in line with the Nation as a whole show that these two factors account for approximately 50% of the differences. Additional Factors Home access To the extent that the digital divide is a function of PC and Internet access it is appropriate to question the qualitative aspects of access. Internet kiosks for example may provide cheap Internet access and whilst appropriate for certain tasks they arguably provide a less satisfactory experience for other Web activities. The real question therefore becomes whether the type of access provided lends itself to the full range of activities available to connected users. It is possible that the divide will not be bridged unless home access becomes fully available. To the extent that this is impracticable an alternative would be to provide common access points capable of providing an appropriate experience. Broadband The digital divide is not just a function of access; speed of access is also important or is likely to become so. Until recently for most users the speed of access has been limited to traditional modems. Although modem technology has increased significantly over the last ten years and is now capable of offering data throughput of up to 56K bits per second that speed is a small fraction of what is likely to be required in the next few years. Unless this factor is recognised there is a danger that the current digital divide could be reduced merely to find that it re-opens due to a vast difference in speed available to some but not all users. In short the digital divide of the (not too distant) future may be one of access speed. Closing the Gap As indicated above, measures to provide appropriate access are likely to have a beneficial impact. Indeed US data from August 2000 claims that schools, libraries, and other public access points continue to serve those groups that do not have home access. The use of those facilities however is not uniform and they are more likely to be used by some groups than other. Equally given the complex nature of the underlying problems it is unlikely that improved access will of itself provide the whole answer. With respect to the UK it would be inappropriate to assume that the same underlying factors creating the divide in North America obtain albeit that there are likely to be strong similarities. Research is necessary (if it has not already been undertaken) to identify the true causes. Once identified targeted action can be taken by addressing the detailed needs of specific groups in particular locations. If, following research, home access was found to be significant element of the divide new strategies would need to be formulated to address that requirement. For example cut-down or recycled PCs could be offered in conjunction with community based Internet access lines. The infrastructual reasons for the lact of effective ICT in less econmically developed countries is the fact that there is a lack of secondary euquipment, suitable electric power, and training. This therefore leads to people not being as experienced in the technology they are using. Also, they depend alot on Multinational Corporations meaning they have to wait for the money then just using the money straight off. Also, it is much easier to purchase as you are buying a physcial package rather than downloading the package. Also, if you dont have internet access, this will be very useful. Also, microcomputers and personal computers have become very popular in terms of ICT because of the reduction in price. Computer-aid projects havnt been so successful. Extensive under-ultilization of equipment and major computer based projects have failed. It hasnt been as successfull in the majority of countries when it should only be the minority. These projects have failed because of the lack of secondary equipment, suitable electric power and training. Also, the governments of the countries involved havnt set up any strategic buying plans so everything comes in bluk or too little software comes meaning more or less people need training. Also, there is a lack of avaiable resources to maintain the ICT. Identified computer skills that are lack are; systems analysis, programming, maintainace, consulting, operational levels from basic use to management. The lack of buisness skills which are identified as a major problem is the fact that buisness are buying software which no one is trained in. They need to plan which software to buy, and whether their staff are trained in this area of ICT. Also, the employees have a lack of skills to begin with meaning they cant use the software.

Inspiration :: essays research papers

Subject: Inspiration Please take a moment to relax your mind and humble your heart to focus on Christ. Allow God, to be the only person on your mind while you read this prayer. If we can take the time to read long jokes, stories, etc., we should give the same respect to this prayer. Friends that pray together, stay together. Dear Lord, I thank You for this day. I thank You for my being able to see and to hear this morning. I'm blessed because You are a forgiving God and an understanding God. You have done so much for me and You keep on blessing me. Forgive me this day for everything I have done, said or thought that was not pleasing to you. I ask now for Your forgiveness. Please keep me safe from all danger and harm. Help me to start this day with a new attitude and plenty of gratitude. Let me make the best of each and every day to clear my mind so that I can hear from You. Please broaden my mind that I can accept all things. Let me not whine and whimper over things I have no control over. Let me continue to see sin through God eyes and acknowledge it as evil. And when I sin, let me repent, and confess with my mouth my wrongdoing, and receive the forgiveness of God. And when this world closes in on me, let me remember Jesus' example -- to slip away and find a quiet place to pray. It's the best response w hen I'm pushed beyond my limits. I know that when I can't pray, You listen to my heart. Continue to use me to do Your will. Continue to bless me that I may be a blessing to others. Keep me strong that I may help the weak. Keep me uplifted that I may have words of encouragement for others. I pray for those that are lost and can't find their way. I pray for those that are misjudged and misunderstood. I pray for those who don't know You intimately. I pray for those that will delete this without sharing it with others. I pray for those that don't believe. But I thank you that I believe. I believe that God changes people and God changes things. I pray for all my sisters and brothers. For each and every family member in their households.

Nuclear Iconography in Post-Cold War Culture :: Culture War Nuclear Iconography Essays

Nuclear Iconography in Post-Cold War Culture I wish in this paper to sketch a project involving nuclear iconography and post-Cold War culture. At the heart of this project is the claim that the current historical moment forms a legitimation crisis for the scientific, military, industrial, governmental, and "cultural" institutions whose interests are configured in the design, manufacture, deployment, and "use" of nuclear weapons. Within this moment, a variety of progressive and regressive movements have been intitiated through the production and reception of nuclear weapons rhetoric. The role of visual iconography in nuclear hegemony has traditionally received minor attention (e.g., compared with the "nukespeak" of foreign policy, mass media news coverage, and literary works). Recent scholarly articles and books have attempted to correct this verbalist imbalance by examining the genres and discourses of nuclear art (e.g., painting), cinema and photography. Collectively, this work establishes that the Bomb is -- after W.J.T. Mitc hell -- an "imagetext" in which verbal and iconic discourses interanimate to produce ways of (not) seeing and forms of (not) feeling that have historically positioned cultural subjects in relation to the technologies, policies, figures, locations, events, and institutions (in both senses as "customary practices" and "formal organizations") which have constituted the nuclear condition . . . "Now Do You See It?": Post-Cold War Nuclear Iconography I am interested in the role of visual rhetoric in maintaining this "war of position" between military, environmental, arms-control, pacifist, industrial, scientific and federal interests [in post-Cold War culture]. Issues in this research include the nature of verbal and visual codes in nuclear representations (e.g., in critical disagreement over the success of nuclear landscape photography in evoking viewer knowledge of the deadly, invisible radiation which "really" suffuses its depicted objects), the uses to which images are put in various social contexts (e.g., in museum exhibits commemorating the Japanese atomic bombings), and the consequences of images for existing power relations between nuclear authorities and citizens (e.g., in legitimating the "accelerated" -- and arguably incomplete -- cleanup of contaminated nuclear weapons plants by federal agencies and their contractors) . . . . . . A preliminary survey of prominent nuclear weapons images suggests [this] "new" theme in this process, unique to the post-Cold War era . . . . . . "Museumification" This theme describes the inter-related processes by which the partially decrepit and moribund nuclear apparatus is being dismantled, appropriated, recycled, commodified, and memorialized in contemporary culture (e.

Issues with Revenue Recognition Within the Software Industry

Issues With Revenue Recognition within the Software Industry The Isoft Example Financial Controller-SoftWarehouse Ltd This report has been prepared for the Board of Directors of SoftWarehouse Ltd for elucidation about the contentious issues that have given rise to the publication of the article concerning Isoft’s issues with revenue recognition. Finally, it will also assess whether or not these issues are likely to affect SoftWarehouse Ltd. TABLE OF CONTENTS Executive Summary:3 Introduction:5Part 1- Examining the Isoft Ltd example:5 PART 2 – The issues faced by software companies in relation to revenue recognition:6 Part 3- Issues raised that may impact SoftWarehouse Ltd:7 Part 4 – Future changes in revenue recognition standard:8 Conclusion:9 Reference List:10 Executive Summary: This report has been prepared for the Board of Directors of SoftWarehouse Ltd for elucidation about the contentious issues that have given rise to the publication of the article concernin g Isoft’s issues with revenue recognition.Finally, it will also assess whether or not these issues are likely to affect SoftWarehouse Ltd. In January 2006, Isoft, a Manchester based supplier of software applications for the healthcare sector, announced that its profit would be below market expectations due to a required change in its accounting policy for revenue recognition. Isoft was forced to reverse revenue of approximately ? 70m in 2005 and ? 55m in 2004 – when Deloitte found that Isoft was recognizing revenue sooner than it should have been.The underlying principle of Isoft’s historic revenue recognition policy had been that the value of the product licenses was recognised at the time of delivery, while the value of support and servicers was recognised as they were performed. Moreover, the value of licences was identifiable and separable form the implementation and support services provided. This is not aligned with what the AASB Revenue states. Consequent ly, Isoft engaged in controversial accounting practices. The company recognised revenue at the start of long-term contracts instead of recognising revenue over the life of the contract.Isoft was recognising revenues from contracts even though actual payments for some projects were due over an extended period (for example: one project it recognized revenue even though actual payments were to be paid over a two-year period). The accounting practice of recognising revenue in this method lead to an overstatement of its income, and therefore had the effect of misleading the stock market and Isoft’s overall credibility. After realigning its revenues to the current period (in 2006) to reflect a fair value of its performance, 40% was taken off its share values and the company was forced to lay off 10% of its staff.Isoft adopted a new revenue recognition policy, which more appropriately reflects the changing nature of the business as the group is involved with more complex and long-te rm product supply projects. In the new policy, licence revenues will be recognised over the same period as the implementation of revenues, which may range from a few months to a number of years from contract signature. This will increase visibility and predictability of earnings. At SoftWarehouse Ltd, our contracts with our customers involve the sale of customised software as well as its implementation and maintenance services.We recognise revenue in accordance to AASB 118. The revenue therefore, is recognised over the length of the contract. Due to the fact that our selling prices include an identifiable amount for the subsequent services, that amount is deferred and recognised as revenue over the period during which the service is performed. We recognise revenue by reference to the stage of completion of the transaction at the end of the reporting period. Therefore, I am confident that we will not encounter similar issues, which were faced by Isoft.However, due to the lack of guid ance from the IFRS and GAAP standards on revenue recognition, it is foreseeable that interpretations could become misguided or unaligned with these standards in the future. The issues raised by Isoft elucidate the importance of recording an accurate picture of its earnings. The joint project of the FASB and the IASB is trying to converge the two sets of standards and offer a single revenue recognition model that can be applied consistently to various transactions – which would address these issues of lack of guidance.Introduction: In January 2006, Isoft Ltd, a Manchester based supplier of software applications for the healthcare sector, announced that its profit would be below market expectations due to a change in its accounting policy for revenue recognition, when it announced its results for the year ended April 2006. This situation is not unusual within the software industry and reflects the issues that software companies face when it comes to accounting for revenues.As t he financial controller of SoftWarehouse Ltd, my goal is to clarify and explain the main issues faced by Isoft Ltd; the consequences of those issues on the business and finally; to determine if those practices could also impact the financial reporting within SoftWarehouse Ltd. Part 1- Examining the Isoft Ltd example: The underlying principle of Isoft Ltd’s historic revenue recognition policy had been that the value of product licences was recognised at the time of delivery, while the value of support and services was recognised as they were performed (Isoft 2006).Moreover, under this policy, the value of licences was identifiable and separable from the implementation and support services provided (Isoft 2006). AASB 118- Revenue (AASB 2010), gives some guidance on how to recognise revenue: â€Å"When the selling price of a product includes an identifiable amount for subsequent servicing, that amount is deferred and recognised as revenue over the period, which the service is p erformed. AASB (2010) illustrates that statement by giving an example which can be applied to Isoft Ltd’s situation: â€Å"When the selling price of a product includes an identifiable amount for subsequent services (for example, after sales support and product enhancement on the sale of software), that amount is deferred and recognised as revenue over the period during which the service is performed. The amount deferred is that which will cover the expected costs of the services under the agreement, together with a reasonable profit on those services. † Therefore, it seems that Isoft Ltd’s traditional policy is acceptable under AASB 118- Revenue.Isoft Ltd had to change its revenue recognition after Deloitte had found that some revenues had been recognised earlier than they should have been (Stafford 2006), which lead to an overstatement of its income and therefore had the effect of misleading the stock market (Griffiths and Bowers 2006), and thus affect Isoftâ⠂¬â„¢s credibility. When the company was obliged to realign its revenues to the current period in 2006 to reflect a fair value of its performance, its revenues got wiped out and it knocked 40% off its share values. The company also announced that at 10% of its staff would be laid off (Meyer 2006).Under Isoft Ltd’s new revenue recognition policy, licence revenues will be recognised over the same period as implementation revenues, which may range from a few months to a number of years from contract signature, and over the full duration of the contract in the case of managed services (Isoft Ltd 2006). The group stated that a change of accounting policy for revenue recognition is needed to more appropriately reflect the changing nature of the business as the group is involved with more complex and long-term product supply projects (Isoft Ltd 2006).Isoft Ltd also mentioned that its new revenue recognition policy would increase visibility and predictability of earnings (RNS 2006). PART 2 – The issues faced by software companies in relation to revenue recognition: Isoft Ltd was accused of being engaged in controversial accounting practices. The main issue with Isoft Ltd’s accounting practices is that it was recognising revenue sooner than it should have been. The company recognised revenue at the start of long-term contracts instead of recognising revenue over the life of the contract (Moulds 2006).Indeed, during the year 2004-2005, Isoft Ltd accounted in full for the revenue raised as part of long-term contracts at the time of receiving part prepayments. Analysts had found that Isoft Ltd, the main software supplier for the NHS’s ? 6. 2bn IT project, was recognising revenues from contracts even though actual payments for projects were only due over two years time (Neveling 2006). For the year ending April 2004, Isoft Ltd recognised ? 30m of payments from Accenture and CSC who were implementing the NHS’s technology overhaul (UK Parli ament 2007).One of the main issues in accounting is about revenue recognition, especially in our IT industry. As KPMG (2009) stated, IFRS does not provide any specific guidance on revenue recognition for software related transactions. The IFRS standard and the Australian GAAP standard on revenue recognition lack guidance when a transaction involves both a good and services related to that good (IASB 2008) – which is often the case for software companies. The difficulty for software companies resides in the fact that due to this vagueness, it is hard to distinguish the revenue from the software and the revenue from the services offered.As Stafford (2006) mentioned, Isoft Ltd is not the first software company to have had issues with revenue recognition. Part 3- Issues raised that may impact SoftWarehouse Ltd: At Softwarehouse Ltd, we are providing customised software to our customers in the mining industry. Our contracts with our customers involve the sale of customised softwar e as well as its implementation and maintenance services. We recognise revenue according to AASB 118, which we previously mentioned in detail in part 1.AASB (2010) adds an interesting point for guidance: â€Å"fees from the development of customised software are recognised as revenue by reference to the stage of completion of the development, including completion of services provided for post delivery service support. † The revenue is therefore, recognised over the length of the contract. Due to the fact that our selling prices include an identifiable amount for the subsequent services we deliver, that amount is deferred and recognised as revenue over the period during which the service is performed.We recognise revenue by reference to the stage of completion of the transaction at the end of the reporting period. We are confident that we will not encounter a similar situation than the one Isoft Ltd went through. However, I have to admit that the AASB is not giving clear guida nce regarding revenue recognition, which leaves us with our own interpretation. Due to this lack of guidance, it could be foreseeable that our interpretation could become misguided or unaligned with the AASB. We should always be aware that even though our policy is acceptable under the Australian GAAP, it doesn’t mean that we are protected from making mistakes.Indeed, Isoft Ltd’s traditional policy was acceptable under the Australian GAAP. However, as their contracts changed, Isoft Ltd did not update its policy, which led to misalignment. At Softwarehouse Ltd, we have to bear in mind that if the type of contracts or transactions that we offer change, then we will have to update our policy to accurately reflect our financial position. Ultimately, we must ensure that we do not recognise revenue too early and overstate our income. Part 4 – Future changes in revenue recognition standard:We are still keeping a close eye on the project regarding the new revenue recogn ition model: the Contract- based revenue recognition model. This is a joint project of the FASB and the IASB whose goal is to converge the two sets of standards (Henry & Holzmann 2009) and to offer single revenue recognition model that can be applied consistently to various transactions (IASB 2008). If adopted the proposed standard will replace existing standards AASB 118- Revenue. The core principle of this model is that an entity would recognise revenue from contracts with customers when it transfers promised goods or services to the customer.The amount of revenue recognised would be the amount of consideration promised by the customer in exchange for the transferred goods or services (RSM Bird Cameron 2011). Under this new revenue recognition model, it is stated that the â€Å"entity should recognise revenue when its net position in a contract with a customer increases as a result of satisfying a performance obligation. An entity satisfies a performance obligation when it transf ers goods and services to a customer. † (IFRS 2008). The last exposure draft (IFRS 2011) indicates â€Å"if a romised good or service is not distinct, an entity would combine that good or service with other promised goods or services until the entity identifies a bundle of goods or services that is distinct. Therefore, the entity would account for the bundle as a single performance obligation†. The revenue for that performance obligation would then be recognised over time by selecting an appropriate measure of progress towards complete satisfaction of the performance obligation (IFRS 2011). Conclusion: One of the main issues in accounting concerns revenue recognition, especially within the software/IT industry.The IFRS and the Australian GAAP standards on revenue recognition lack guidance when it comes to multiple element transactions. Due to this lack of guidance, it is foreseeable that interpretations could become misguided or unaligned with the IFRS or Australian GAA P standards. The issues raised by Isoft Ltd, elucidate the importance of recording an accurate picture of its earnings. Indeed, Isoft had to change its revenue recognition after it was exposed that some revenues had been recognised earlier than they should have been, which lead to an overstatement of its income and therefore had the effect of misleading the stock market.The joint project of the FASB and the IASB is trying to address these issues of lack of guidance. Reference List: Australian Accounting Standards Board 2010, AASB 118 Revenue. Available from: www. aasb. gov. au. [20 March 2012]. Griffiths, I & Bowers, S 2006, ‘Revealed: Isoft’s U-turn on accounts problems’, The Guardian 2 November. Available from: . [8 April 2012]. Henry, E & Holzmann, OJ 2009, ‘Contract-Based Revenue Recognition’, The Journal of Corporate Accounting & Finance, pp. 77-81. Available from: Proquest [28 March 2011].House of Commons, Committee of Public Accounts 2007, Dep artment of Health: the national programme for IT in the NHS, The Stationary Office, London. International Accounting Standards Board 2008, Discussion Paper Preliminary views on revenue recognition in contracts with customers. Available from: . [20 March 2012]. IFRS 2011, Exposure draft revenue from contracts with customers. Available from: . [5 April 2012]. KPMG 2009, Impact of IFRS on the Information Technology and Business Process Outsourcing Industries. Available from: < https://www. in. kpmg. com/securedata/ifrs_Institute/Files/IFRS_IT. df>. [ 10 April 2012]. Meyer, D 2006, ‘NHS IT timescale questioned as Isoft CEO resigns’, Zdnet 15 June. Available from: . [7 April 2012]. Moulds, J 2006, ‘Isoft directors and ex- auditors face questioning in new inquiry’, The Telegraph 26 October 2006. Available from: . [5 April 2012]. Neveling, N 2006, ‘What’s going on at Isoft’, Financial Director 31 August 2006. Available from: . [7 April 2012]. R NS 2006, Isoft Change in Accounting Policy. Available from: . [5 April 2012]. RSM Bird Cameron Chartered Accountants, 2011, Revenue Recognition- New and Revised Proposal, Available from: http://www. rsmi. com. au/rsbcwr/_assets/main/lib90034/111220_financial%20insight_revenue%20recognition%20web. pdf>. [28 March 2012]. Stafford, P 2006, ‘Revenue Recognition is Isoft’s Curse’, Financial Times 9 August. Available from: http://www. ft. com. [5 April 2012]. Uk Parliament 2007, Memorandum submitted by Ian Griffiths and Simon Bowers. Available from: . [8 April 2012].