Retail manaement Essay Example | Topics and Well Written Essays - 1000 words

Retail manaement - Essay Example The proposed complex will have one department store and 40 other spaces of which many will be for office buildings. The boutique will encounter low competition which is a very positive factor. The Downtown Arcade also has its downside. The developers are placing an 8% corporate tax levy on all sales after $225,000. These types of taxes are common occurrences at malls, but it is a bit high and the $225,000 application tax point is too low. This area has been a business ghost town for over 50 years. There is a lot of uncertainly if the area can be transformed into a high level business activity area. The second potential location is called Tenderloin village. The place is an urban area in which there is business activity. The location has a lot benefits. The space is available for $1250 a month for a 900 square area lot. The contract is a short two year contract which gives the business owner flexibility. There are not extra charges related to large complex buildings. The landlord is a person Stephanie knows and trusts. The location has its disadvantages as well. There are three other small clothing stores in the area, so there is competition. The store is located in the basement of a home, thus the location has visibility issues and limited parking. The levels of walking traffic for this location are possibly low. The third location is called Appletree Mall which is an established mall with 8 years of existence. This location provides benefits for Stephanie’s boutique. The mall has lots of clientele and plenty of visitors. The sales of the mall went up by 12% last year. The space available is larger than the other lots with an overall space of 1200 square feet. The boutique would receive a large amount of walk-by traffic to the store which generates lots of sales. The mall is located just off an interstate highway which brings additional customers which are not necessarily residents of the region. The Appletree Mall also has its

The requirements of IAS 38 in respect of Research and Development Essay

The requirements of IAS 38 in respect of Research and Development expenditure are theoretically dubious and practically unnec - Essay Example The entity intends to complete the intangible asset and thereafter, use and sell it. The entity has the ability to use or sell the asset. The entity can explain the ways of generating future economic benefits by means of these intangible assets. The entity has adequate financial, technical and other utilities and resources in order to use and sell the intangible asset. The entity can demonstrate its ability to determine and measure the expenditure that can be attributed to the intangible asset during its development (IFRS, 2012). However, in the recent past, the implementation of IAS 38 in respect of research and development expenditure has been under some sort of controversy. Leaders and researchers all around the world have regarded the implementation of IAS 38 in this field as being dubious and practically unnecessary. They believe that research and development expenditures should be treated as an expense and should be recorded in the income statement and its amounts should be dis closed in accordance with the accounts. This idea has formed the basis of research for this study and the following section will involve a critical evaluation of the idea explained above and its feasibility. Evaluation Over the last few years, the fact explains that, the relation between accounting and the extent of investment in activities giving rise to intangible assets has been an area of constant debates. One example of such activity includes the expenditures that arise from a research and development. The general concern that people have shown regarding this particular activity and its link with accounting is the fact that some of the expenditures create economic assets and that the extent of mandated disclosure of these expenditures within the financial statement is limited. IAS 38 requires entities to recognize expenditures on intangible assets, only if they fulfil the abovementioned criteria. The compulsory disclosure of these expenditures within the financial statements is limited. However, authors and leaders have severely discouraged this aspect of IAS 38, as they believe that these expenditures should be treated as proper expenses and should be fully disclosed in the accounting reports. This is primarily because, inappropriate accounting measurement practices characterized by the inadequate disclosure of expenditures arising from research and development activities, may lead to the failure of stock markets in fully reflecting the benefits of the R&D activities in the market value of firm (Dedman et al., 2009). The author also stated that stock markets have sometimes underestimated the value of R&D activities and thus, a proper disclosure of information related to R&D expenditures is of utmost importance. On the contrary, Lev (2008) cites Skinner’s summary which contradicts various theories suggesting the negativities associated with accounting for intangibles. The author quotes that, â€Å"there is no evidence that the accounting or disclo sure treatment of intangibles in and of itself results in systematically lower valuations for these firms† (Lev, 2008, p. 209). However, the author simultaneously highlights the importance of proper disclosure of R&D expenditures in the firm’s income statement. The author explains that, firms that specialize in R&D