Studying in American university of Kuwait Essay Example for Free

Studying in American university of Kuwait Essay Established in 2003 by Amiri Decree 139, American University of Kuwait (AUK) is an autonomous liberal arts institution. Its campus is situated at the intersection of Salem Al Mubarak Street and Amr Ibn Al As Street in Salmiya district, Kuwait. In addition, AUK is a certified body by the council for private universities and the Ministry of Higher Education of Kuwait state. The administrative structure and educational standards are based on the American model of higher learning. The University strives at equipping students with essential skills for promoting critical thinking and value for diversity. One of the major motivations for applying at AUK is its educational quality and diversity. The fact that the medium of instruction is English, the university offers a serene environment for any English speaker. Consequently, students from around the globe can join, owing to the fact that English is the most widely spoken language. In addition, with its large garden enclosed by offices and classes, the campus design offers an open atmosphere for intensive learning. Apart from the design, its interactive and relaxing structures have greatly motivated me to study at AUK. This is mainly offered through pool tables and HD televisions found at a tent located at the main gate. AUK does not only offer curriculum activities, but also extra curriculum opportunities like athletics and clubs. Examples of athletics offered include, soccer, volleyball, basketball and table tennis, among others. Since the university values a multicultural and a lively campus involvement, students of different cultural background makes this a reality. Similarly, self-awareness and effective communication skills offered, leads to responsible, morally acceptable individuals in societies. Thus, I believe I will become a good ambassador of the institution. Moreover, the students clubs and associations play a crucial role in giving back to the community. This is through community service activities, where I can take part and at the same time create goodwill between the institution and the surrounding community. In summary, I am convinced that my relationship with the AUK administration will create a win-win situation. The modern facilities and the high-speed internet services do not only attract me, but will also make my life in campus lively and collaborative. The institution has IT developments that will ensure a rich learning environment. A wide range of degree programs offered in the institution creates a convenient space for diversity. Lastly, I find the university location quite peculiar. Surrounded by major malls and cafes with American style, the location is just one of a kind.

Privacy In The Information Age :: essays research papers

The world is changing rapidly. There used to be a time when we could be confident that no one could learn too much about our personal lives. There used to be a time when information was merely a way of keeping records. That time is gone and with it went a large amount of what we might call our personal privacy. Information about our personal lives has now become one of the most valued resources on the market today. The explosion of the computer and communications industries has created a system that can store vast amounts of data on an individual and transmit that information almost anywhere in a negligible amount of time. More and more people are gaining access to this information and the government has been too slow to react to the changes. As a result, employers, insurance agencies, law enforcement officers, and researchers are all lobbying for legislation that would establish clear rules for the access to this information. Each of these groups stand to gain enormous benefits from legitimizing access to a broad base of personal information. This information will be organized into vast databases that will be maintained by the government, credit report agencies, the health care industry, and employers. The system will come to contain information on virtually every aspect of our lives, the data will be quickly and efficiently transferred around the globe via the arising Global Information Infrastructure, and paper records sitting in file cabinets will become a thing of the past. However, considering current trends, what may be missed the most from the old system are the locks on those old, rusted file cabinets. This new system allows for a lot of access to previously confidential files and we are already seeing the negative effects that this system has produced. For example, employers and insurance companies have begun to discriminate against individuals based on samplings of a person’s or fetus’s DNA. As genetic testing and the human genome proje ct advance, there will be an even greater opportunity for discrimination based on characteristics or conditions that may, or may not, arise in an individual's future. To provide a background to the discussion, this report will establish who has access to what information today.

Assessment for Learning Essay

The Assessment Reform Group (2002) identifies ten principles to guide classroom practice in assessment for learning . Choose five of particular relevance to your practice and evaluate them in relation to the pupil experience in your school. Assessment for learning (AFL) is the process of seeking and interpreting evidence for use by learners and their teachers to decide where the learners are in their learning, where they need to be and how to achieve their goal. Black and William (1998) in their research on the use of formative assessment in the classroom found ten principles of assessment which guide classroom practice in AFL. (Assessment Reform Group, 2003) The school I work in is a city based multi cultural school. UIS caters for children from all backgrounds and inclusion is of importance to our setting. I work in key stage 1 as a HLTA. I do PPA cover throughout the year 1 classes and I cover when a teacher is away wherever possible. The subjects I teach are the foundation subjects which are History, Geography, R. S and Music. I plan, implement and assess these subjects. In UIS, we believe that effective assessment provides information to improve teaching and learning. To do this in our school, we undertake two different but complementary types of assessment: assessment for learning and assessment of learning Assessment for learning (formative assessment) involves the use of assessment in the classroom to raise pupil achievements. It is based on the idea that pupils will improve most, if they understand the aim of their learning, where they are in relation to this aim, and how they can achieve this aim i.e. to close the gap in their knowledge. Assessment of learning (summative assessment) involves judging pupils’ performance against national standards. Teachers may make this judgement at the end of a unit of work, a term, a year, or if a key stage. We give our children regular feedback on their learning so they understand what it is that they need to do better. Research has shown that their involvement in the review process raises standards, and that it empowers pupils to take action towards improving their performance. The objectives of this assessment are: to enable our children to demonstrate what they know, understand and can do their work; to help our children recognise the standards to aim for, and to understand what they need to do next to improve their work; to allow teachers to plan work that accurately reflects the needs of each child; to provide regular information for the parents and carers that enables them to support their child’s learning; to provide the head teacher and governors with information that allows them to make a judgement about the effectiveness of the school. To support our teaching, we use the Early Years Foundation Stage guidance, the Primary Framework literacy and mathematics schemes of work based on National Curriculum objectives. We assess children at the end of each unit of work to help us identify each child’s level of attainment. The first principle that I will be discussing is that assessment for learning should be part of effective planning of teaching and learning. The teachers plan their lessons with clear learning objectives. We base these upon the teacher’s detailed knowledge of each child. UIS strive to ensure that all tasks set are appropriate to each child’s ability. Our lesson plans make clear the expected outcomes of each lesson. (Appendix 1) Teachers always share the lessons learning objectives with the children as the lesson begins. They also indicate the way in which the activity is linked to the learning objective, and the criteria against which the work will be judged which is the success criteria. Teachers ask well phrased questions and analyse pupils’ responses to find out what they know, understand and can do, and to reveal their misconceptions. We identify those individual children who do not achieve, or exceed, the expected level for the lesson, and we use this information when planning for the next lesson. Targets are set for end of Key Sage 1 and approved by Governors and the local Authority. UIS set year group targets in Mathematics, Reading and Writing for all our classes, during each academic year. These are expected levels of achievement reached by the end of the year for the majority of children and the more able in class. In Foundation1, staffs know that the next step children need to take is through systematic observation. These are shared with parents and talked through with children where appropriate. In Foundation 2 children have individual reading targets and group writing targets. In Key Stage 1 all children have individual and group targets in reading, writing and maths. Children’s targets are passed over to parents and carers, the progress of each child at the end of each term is reviewed, and revised targets are set. UIS recognise various methods of assessing a child’s learning. The type of assessment that our school make varies from subject to subject. We assess informally throughout the term, based on observations made by teachers or support staff. Every week I annotate assessment of the class I teach on my plan(appendix 2) and at the end of term fill out the assessment sheet. (Appendix 3) These observations are recorded in a variety of temporary formats, such as post-it notes, and are used to inform the Foundation Stage Profile or National Curriculum levels. We take the objectives for individual lessons from the board learning objectives within the school’s curriculum plan. These in turn reflect the demands of the National Curriculum / EYFS. The teachers record the progress of each child against these board objectives. This enables them to make a  judgement about the work each child in relation to national standards and allows them to monitor the progress of each child. Each teacher passes this information on to the next teacher at the end of each year. ` Teachers can review the rate of progress by looking at work in pupils’ folders or exercise books and by the marks in the record books. They can then use this to adjust day to day teaching and plan further work. One way to improve manageability would be to make a note only of those pupils who achieve significantly above or below the expected outcomes of a task’ (QCA, p. 3). The second principle that I will be discussing is how assessment for learning focuses on how students learn. ` If children don’t learn the way we teach†¦ perhaps we should teach the way they learn (Eppig, 1981). ’ The process of learning has to be in the minds of both the learner and the teacher. Assessment for learning helps those pupils, who do not always find learning easy, to make progress. ‘Planning for personalised learning focuses on what teachers need to do ,individually and collaboratively ,to develop assessment for learning and personalise learning by establishing supportive conditions for learning’(AFL,Primary Framework). When we do our assessment of a lesson we have to consider the different styles in which pupils learn. Day to day assessments is an on going and essential part of teaching and learning. Teachers and children continually reflect on how learning is progressing, see where improvements can be made and identify the next steps to take (national strategies standard) . When undertaking assessment of pupils, teachers use their knowledge of individual children in deciding on how to go about assessing the pupil. `Research on grading pupils, shows that children are less motivated and often demoralised when they are continually compared to each other. They need to know the criteria for the next level above ,but they do not need to know what that level is called. (Clarke,2001,p. 74)’ We have to consider the nature and level of support that the pupil receives as part of a normal classroom routine. The tasks and assessments are intended to assess a child’s ability in fair and a comparable way. If a child is a visual learner and for the assessment to be fair to him we adapt the test by having pictures inserted as well as questions. For those children that are auditory learners we read out the questions to the whole class and this enables them to fulfil their learning style. In our setting we have a working wall where the children are able to see what the objective and the success criteria of the lesson are. Appendix 4 On the working wall for the visual learner, we have two eyes to show what the teacher is looking for and ears to show the children to listen. For those children where English is an additional language we have support staff that are available while the test is taking place, so the staff can help where appropriate. Our school aims to be an inclusive school. We actively seek to remove the barriers to learning and participation that can hinder or exclude individual pupils, or groups of pupils. We achieve educational inclusion by continually reviewing what we do, by monitoring data, and through asking ourselves questions about the performance of these individuals and groups of pupils. In our setting there is a boy that is very able but his writing skills are very poor. His fine and gross motor skill are underdeveloped so to get the best out of him, he does all his work on the computer which is then assessed. Children that are on the S. E. N . register have their own I. E. P. ’s to work from with their allocated support staff, once their target is achieved they move on to the next target from their P-scales. The third principle that I would like to discuss is that assessment for learning should be recognised as central to classroom practice. Tasks and questions should prompt learners to demonstrate their knowledge, understanding and skills. In our setting assessment for learning is recognised as central to classroom practice. In the Foundation unit the teachers usually plan the lesson with the ideas given by children. On a Friday afternoon the teacher has circle time with her class where she starts off with a basic topic and the children then give ideas on what they would like to do around the topic. In considering the ideas of the children it prompts the learners to learn and helps with the ongoing of assessments. I did a lesson on electricity in a year2 class which I was covering . In order for me to assess the children I asked a lot of open questions which prompted them to answer. The open questions gave the children the opportunity and encouraged them to think beyond the literal. ‘Research on wait-time showed that teachers need to leave five seconds after asking children a question, to allow them to respond. This is the optimum time it takes to process the question to formulate the answer (Clarke, 2001. p. 87). After having watched the classroom experiment I was able to take on board the idea of waiting time which I now religiously apply. ` Increasing waiting time after asking questions proved difficult to start with due to my habitual desire to â€Å"add† something almost immediately after asking the original question. The pause after asking the question was sometimes â€Å"painful. † It felt unnatural to have such a seemingly â€Å"dead† period, but I persevered. Given more thinking time, students seemed to realize that a more thoughtful answer was required ‘(D e r e k, Century Island School). The negative side to the waiting time is that some teachers wait for two seconds before they either ask another child or answer the question themselves . Children often then do not try to think of a response, because they know that the answer would be given or another child would be asked to answer. The lesson was very inter-active I was able to assess whether my success criteria was achieved. When I handed the worksheets to the children I had asked them to write the learning objective below the date and to refer to it when they were doing there work. The fourth principle that I would be discussing is that learners should receive constructive guidance about how to improve their learning. `An assessment activity can help learning if it provides information that teachers and their students can use as feedback in assessing themselves and one another and in modifying the teaching and learning activities in which they are engaged. Such assessment becomes â€Å"formative assessment† when the evidence is actually used to adapt the teaching work to meet learning needs (Black and William, 1989). Most learners are curious to know how they have done in a task . `Feedback is sometimes seen as part of a behaviourist approach to learning ,where it is part of the sequence stimulus-response –reinforcement (Wragg,2001,p. 27). The aim of marking in our setting is to improve the quality of teaching and learning in the classroom. Whilst doing my researchÃ'Ž I found out that Nancy from Riverside school says that her marking has developed from comments with targets and grades, which is the school policy, to comments and targets only. Pupils do work on targets and corrections more productively if no grades are given. Marking is an integral part of assessment and target setting and the outcomes inform short, medium and long term planning. Its rationale is to enable every child to achieve their full potential. It is recognised that one to one oral feedback is most valuable for young children. It should remind the child of the learning intention and emphasise the positive aspects of the child’s practical or recorded work. ` Various research studies have concluded that feedback is most useful when it focuses on the learning intention of the task rather than other features of the work’(Clarke,2001,p. 50). In our setting the minimal response for all written work is that it should be initialled and dated to acknowledge that it has been seen. Maths work is usually ticked if correct and marked with a bullet point to signify that the answer needs to be checked. In UIS traffic lights are used to indicate whether the child has achieved the success criteria for the task. Green-learning objective met, orange-a few examples of learning objective having been met, red-learning objective not met, need to see the teacher. (Appendix 5). When a child meets the learning objective the work may be underlined or highlighted in some way to acknowledge the child’s success. Smiley faces are used to indicate good effort. Whilst doing my research and talking to other teachers in school I found out that each child gets a detailed feedback of their work at regular intervals. This detailed feedback could be oral or written and should be specific and related to the learning intention set for the particular piece of work. Feedback needs to indicate areas where improvements or next step targets are to focus. It is important to allow children the time to reflect on the feedback and make improvements to a specific piece of work. The fifth principle that I would like to discuss is assessment for learning develop learners’ capacity for self-assessment so that they can become reflective and self managing. `In practice, peer assessment turns out to be an important complement to self-assessment. Peer assessment is uniquely valuable because students may accept criticisms of their work from one another that they would not take seriously if the remarks were offered by a teacher’(Black and William. p. 6). Peer assessment and self-assessment is much more than children marking their own or each other’s work. To improve learning, it must be an activity that engages children with the quality of their work and helps them reflect on how to improve it. Peer assessment enables children to give each other valuable feedback so they learn from and support each other. It adds a valuable dimension to learning: the opportunity to talk, discuss, explain and challenge each other enables children to achieve beyond what they can learn unaided. Peer assessment helps develop self-assessment, which promotes independent learning, helping children to take increasing responsibility for their own progress. `Research shows that if self-evaluation is linked with the learning intention of a task, children’s progress, persistence and self-esteem is improved(Black and William,1998). The development of peer assessment and self-assessment takes planning, time, patience and commitment. When children don’t understand the intended learning outcomes they find it difficult to move beyond superficial criteria related to neatness and spelling. By using a range of strategies and by dedicating time to allow children to reflect on and discuss their learning teachers can develop children’s peer assessment and self-assessment skills. ` Independent learners have the ability to seek out and gain new skills, new knowledge and new understandings. They are able to engage in self-reflection and to identify the next steps in their learning. Teachers should equip learners with desire and the capacity to take charge of their learning through developing the skills of self-assessment (Assessment Reform Group, 2002)’. UIS trains children to use the traffic light system to indicate directly on their work to what extent they feel they have achieved the learning objective of their given task and how secure they feel they are in their learning. This helps the teacher to identify if a child is having any difficulty and this also give the children confidence in seeking help. The negative aspects of using the traffic light system at right at the end of the lesson is that some children who are over confident tend to rank their achievement very high and those children that have low confidence tend to under estimate themselves. Teachers in our setting also encourage children use the thumbs up that is when a child is confident they have achieved what was expected of them, thumbs sideways which indicates that they are half way there in understanding the objective ,but could achieve more and thumbs down which indicates that the child does not really understand and needs a bit more help. In order to develop pupil’s skills with self assessing their work we use prompt questions which the children can think about when reviewing their work. Pupils need to be able to assess their own progress to become more independent learners. ` One of the reasons peer assessment is so valuable is because children often give and receive criticisms of their work more freely than in the traditional teacher/child interchange. Another advantage is that the language used by children to each other is the language they would naturally use, rather than school language’ (Black et al, 2003). We regularly do peer marking which I find very helpful indeed. A lot of misconceptions come to the fore, and we then discuss these as we are going over the work. I then go over the peer marking and talk to pupils individually as I go round the room. Peer evaluation works really well because children learn from each other where they have gone wrong and how to put it right. The advantage of peer assessment is that children get to work with different children and they get a wide idea on how the pupil has achieved their success criteria. Some children assume that the more able children never find anything difficult, but this process makes them aware that all learners find some aspects difficult. After having done all my research I have found that the most important aspect of assessment is to have the learning intention and success criteria in focus. In UIS, with the self –evaluation strategies that we use it develops children’s awareness of their learning needs as well as open doors for teachers to get a better understanding of the pupil. Some teachers tend to give feedback to pupils on areas that are not of much relevance to the objective. It takes a while to get into the habit of giving appropriate and relevant feedback but the strategy is simple, make sure that the learning intention is mentioned first and then talk about the secondary features. If it is necessary to mention the secondary features, then say it in a very low tone to the pupil concerned. `As the research demonstrates, formative assessment makes a significant difference to children’s progress –in their ability to be confident, critical learners, to achieve more than ever before and in raising their self-esteem. In a world of continuing pressure, it is good to know that we are making a real difference to children’s lives. (Clarke, 2001, p139). ’Pupils enjoy finding that other children often have the same thoughts, share similar feelings on a particular subject, and have similar problems or successes whilst doing self-evaluation assessment. Ofsted had done a survey on 43 schools and found that 7 of these schools were inadequate in their assessment for learning. `Where assessment for learning had had less impact, the teachers had not understood how the approaches were supposed to improve pupils’ achievement. In particular, they used key aspects of assessment for learning, such as identifying and explaining objectives, questioning, reviewing pupils’ progress and providing feedback without enough precision and skill. As a result, pupils did not understand enough about what they needed to do to improve and how they would achieve their targets. Teachers did not review learning effectively during lessons; opportunities for pupils to assess their own work or that of their peers were infrequent and not always effective’(Ofsted). Michael Fullan also suggests that many educational innovations have been frustrated by the inherent but understandable ‘conservatism’ of teachers. He suggests that real change will only occur where teacher beliefs about teaching and learning have been significantly altered. Education is littered with examples of innovations that have either failed or only been partially implemented because teachers weren’t convinced the change was necessary and would result in real improvement. The result has been that they merely modify their practice at the edges and then abandon the change after a while because it ‘didn’t work for them’. More effective use of assessment, particularly formative assessment, will require many teachers to reconsider their approach to teaching and learning and to re-evaluate their working practices’(Weeden,2002,p. 127). Therefore if schools and teachers want to make changes they have to have the subject knowledge, be committed and dedicated to continually re-examine their teaching styles. Reference Assessment Reform Group (2002) Assessment for Learning: Ten Principles [online] Available from:www. assessment-reform-group. org. uk [Accessed 19th December 2010]Ã'Ž Black, P. ,and Wiliam,D. (1998). Inside the black box: Raising standards through classroom assessment. Phi Delta Kappan Vol 80, 139-149. [Accessed: 19th December 2010] Clarke,S. (2001). Unlocking formative Assessment . London: Hodder and Stoughton Clarke,S. (2005)Formative Assessment in Action London:Hodder and Stoughton Eppig, P. (1981) Education by design –used in the UK as Critical Skills program by Success@Bristol (Bristol Education Action Zone) Weeden,P. Winter,J. Broadfoot,P. (2002). Assessment-What’s in it for Schools. [online] London: Routledge Falmer. p. 127. Available from: http://northampton. np. eblib. com [Accessed:27th December 2010] Wragg,E. C (2001). Assessment and Learning in the Primary School [online]. London: Routledge Falmer. p. 27. Available from: http://northampton. np. eblib. com [Accessed:27th December 2010] QCA (1999) Keeping Track,Qualification and Curriculum Authority. http://nationalstrategies. standards. dcsf. gov. uk/primary/primaryframework Appendices 1. Lesson plan 2. Annotated Lesson Plan 3. Assessment sheets 4. working wall 5. Traffic lights.

Gold Corporation Example For Free - Free Essay Example

Sample details Pages: 11 Words: 3216 Downloads: 8 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? Executive Summary As the gold industry leader, Barrick Gold Corporation has the largest production of gold (7.7 million ounces recorded in 2008) obtained from its portfolio of 26 mines, allowing investors incredible leverage to higher gold prices. Barrick wishes to provide sustainable economic development centered around environmental stewardship, as well as a culture of safety superior to those of competitors. An accounting policy examined in this project is the pension benefit plan employed by Barrick Gold, and how it is accounted for using industry trends, practices and the economic situation in order to determine the plan cost and the obligations requiring accruement. Don’t waste time! Our writers will create an original "Gold Corporation Example For Free" essay for you Create order While the assets of the plan are recorded at fair value, Barrick uses the analysis of actuaries to determine the losses and gains influenced by the plan. Another accounting policy which will be discussed is the method Barrick utilized to determine its goodwill, as well as its intangible assets. By using a combination of the market-based and cash flow (discounted) approach, Barrick is able to establish the goodwill, as well as the value of the intangible assets. While impairment is correctly recognized when the market value of the assets is higher than the fair value, both the intangible assets and goodwill are assessed every year to determine whether impairment is necessary. Barricks capitalization vs. expense policy considers three different costs; exploration costs, project expense, and environmental cost. In regards to exploration costs, they examine two different types of sites. Brownfield sites contain mineral reserves whereas Greenfield sites do not. The exploratory costs that they incur at Brownfield sites are capitalized and costs related to Greenfield are expensed. Their second expense, the project costs, is usually capitalized when mineralization of proven and probable reserves has occurred. Finally, the environmental costs are usually expensed as incurred. During the third quarter of 2008, Barrick Gold confirmed their conversion to IFRS in the future. As outlined in the annual report, Barrick has approached the conversion and considered the things that would be affected by IFRS like reporting of financial statements, internal controls and procedures, information technology and data systems, disclosure, financial reporting training curriculum, and downstream business activities. After considering the impact of IFRS, they have taken a few steps to get ready for the IFRS conversion such as completing an initial assessment of the merits of a potential conversion to IFRS. They also employed an IFRS team to deal with all the issues, and performed a technical analysis of the accounting differences between GAAP and IFRS statements. With regards to performance, Barricks liquidity ratios are decreasing due to the allocation of capital towards investing activities. In terms of solvency, debt-to-equity has been stable, allowing their liabilities to remain steady with investments being financed mainly with equity. However, some of Barricks ratios are below the average for the industry, potentially indicating poor financial performance. In addition, Barrick has seen a decrease in net income and earnings per share yet the companys dividends are increasing due to positive future expectations. Introduction Barrick Gold Corporation was founded in 1983 by Peter Munk. Its headquarters are in Toronto, Canada with regional business units located in North America, South America, Africa, and Australia. It is the largest company in the industry with 27 mines worldwide and 139 million ounces of proven and probable of gold reserves. It became the largest gold producer after acquiring Placer Dome in 2006. This report will discuss the overall gold industry, Barricks strategies in the near future, some of their accounting policies, transition to IFRS, performance, and financial analysis. Industry Business Strategy Barrick Gold is one of the three major players in the industry with accumulated 2008 sales of $7.9 billion, 16,300 employees, and a market cap of $45 billion. Other main players in the industry include Goldcorp and Newmont Mining, with market caps of $33 billion and $27 billion respectively. Additionally, there are several other mining companies such as Agnico-Eagle Mines Ltd., Yamana Gold Inc., Randgold Resources Ltd., and Harmony Gold Mining Company Ltd., with market caps ranging from $2.4 $12 billion. Most of the gold producing companies have seen increasing profits since 2001 due to rapidly rising gold prices. In 2001, one ounce of gold cost $271 compared to todays $1,100/ounce price. However, there is a possibility that these profits will not be sustained by most companies for five reasons: Rising labour cost, energy cost, raw material cost, depletion of the worlds natural gold reserves, and loss of operations due to environmental restrictions. In addition, gold is a non-r enewable resource meaning that as more gold is explored and mined out of the ground, it becomes harder to find. The increased use of technology has greatly simplified the process of exploring gold, contributing to greater quantities of mined gold. However, the extraction of millions of ounces of gold has decreased the earths natural gold deposits. This forced companies to search for gold in areas where mining is prohibited, thus raising environmental and political issues along with several outstanding lawsuits. This further increased the operational expense of gold mining. In fact, Newmont Mining Corporation (second largest gold mining company) is depleting its current reserves by 10 ounces per minute without discovering gold deposits as large as it used to. Due to increasing operating costs and companies desperate attempts to increase profits, there was marginal expenditure on environment preservation resulting in colossal damages. Tons of heavy metals such as cyanide and mercur y are deposited into the environment annually as a result of spills during the mining process. Cyanide and Mercury increase gold production rates, but both of them are incredibly poisonous to humans, animals, and the overall surroundings. Accounting Policies Pension Benefit Plan for Employees Since 2008, the value for the employee pension plan provided by Barrick Gold has seen a decrease due to the lower value of the assets. These pension assets appear to be valued at their fair value, and when pricing is not possible, market estimations are used. Furthermore, support from actuaries is used in order to determine both the losses and gains, which would be influenced due to the pension. Barrick Gold takes into consideration the economic situation, as well as industry trends and practices, when establishing suppositions for the cost of the reported pension, as well as the obligations, which will need to be accrued. These suppositions include the rate of return (long-term), compensation increases in the future (rate) and estimates of the market, all of which are consulted to uncover the pension cost. Both the assets of the pension plan and the accrued obligations would be regulated if the future presented a discrepancy in costs as compared to Barricks initial estimations. In order to establish the accrued obligation, the discount rate needs to be known, and is actually set annually by utilizing the present value to uncover the contribution needed in the present in order to be able to deliver the outlined future benefits. Competitors, such as Goldcorp, and Newmont mining, have taken similar action to accrue their respective obligations listed as benefit plan for employees. These companies also use discount rates, as well as estimations of the performance of the investment, in order to determine the cost of the pension. Goodwill and Intangible Assets Barrick Gold appears to use industry-specific methods in order to valuate its goodwill. It used both the market based and the discounted cash flow method (DCF) in order to establish the fair value. Market estimations and trading prices (equity) for both Canadian and American companies in the same industry are consulted for the market based method. While the cash flow approach utilizes Barricks best estimation of its assets expected future cash flow, as well as its discount rate. Furthermore, both goodwill and intangible assets are assessed every year to determine impairment. Barrick has stated that due to the decline of the reserves of gold in one of its mines (Plutonic gold mine in Australia), there is an increased chance that there will be a goodwill impairment. This impairment would only occur if there was a persistent decrease of the economic factors influencing the mine, however Barrick has already began to assess the carrying amount of goodwill associated with Plutonic for future impairment if necessary. Both goodwill and intangible asset impairment is recorded when it is found that the carrying sum (amount) exceeds the fair value (net realizable value) of the asset. Other competitors, such as Goldcorp Inc. and Newmont Mining, utilize the same approach since it has now been considered a standard for this industry. The future implementation of IFRS will provide new recommendations on how Barrick Gold should assess their goodwill and intangible assets. Barrick has begun preparing for new rules such as identifying when an intangible asset should be recorded as expenditures (and how they qualify). Capitalization vs. Expensing The final accounting policy discussed is the decision process defined by Barrick Gold to establish whether to capitalize or expense their assets. Expenses such as project expenditures, environment costs and exploration expenses are all examined in detail. Exploration expenditures involve recording the initial search for the mineral deposits and any other costs that were incurred at the sites. There are two different types of sites that are defined by Barrick Gold: Brownfield (containing mineral reserves) and Greenfield (no mineral reserves). Costs related to the exploration of the Greenfield site are expensed as incurred. Exploratory costs related to Brownfield sites are capitalized as incurred if there is a high probability that the mineral resource will develop into a proven and probable reserve. In terms of project expenses, costs related to projects are capitalized only when reserves are converted into mineral substance but they have to be proven and probable reserves. Befor e mineralization is classified as such, the projects are expensed, excluding the costs that are incurred in order to construct tangible asset. Capitalized costs related to tangible assets are accounted for in the account, Property Plant and Equipment. Furthermore, Barrick Gold expenses costs related to the environment during their production phase of mining. In certain cases, if the cost to acquire or install a plant during the production phase prevents future environmental contamination, it is actually capitalized. When a contingent loss occurs due to an asset, a loss accrual is recorded if it is reasonably estimable and updated when new information is received. Competitors in the same field, such as Goldcorp Inc. and Newmont Mining Corporation, state that their exploration costs are always expensed as incurred. However, they do not provide detail as to why it is expensed or whether capitalization should be a consideration. IFRS Conversion Starting from January 1, 2011, all public companies in Canada are required to report in accordance with IFRS instead of GAAP. In early 2008, Barrick Gold performed a preliminary analysis on the impact of IFRS, and later confirmed its conversion. In 2011, Barrick will prepare its financial statements using IFRS, which will improve the comparability of their financial statements with other companies that are also following the standard. These new reporting standards will affect many areas of the company, such as reported figures for financial position and performance, internal controls, procedures for financial reporting, information technology and data systems, disclosure controls and procedures, financial reporting training curriculum, and other business activities that depend on reported figures. Barrick Gold has created an IFRS team which has taken a few initiatives to address the issues pertaining to IFRS and to ensure a smooth conversion process. This team is going to be res ponsible for preparing a detailed plan for IFRS conversion and are planning on completing this plan by the end of first quarter of 2009. Another project undertaken by the team is to perform a technical analysis of the accounting differences between the GAAP and IFRS statements. This report is scheduled to be completed by the third quarter of 2009. Additionally, the IFRS team will be constantly monitoring the IFRS conversion process over the years and will update the conversion plan as well as inform the public of any new developments. Performance Financial Analysis Significant financial strength is one reason why Barrick Gold is considered an industry leader in the gold and rare metal industry. In the following section, we will scrutinize their financial statements and discuss key elements such as liquidity, solvency, and leverage to understand their performance trends. (See Appendix A for Financial Statements Appendix B for Financial Ratios) Liquidity The liquidity of the company has marginally deteriorated over the years. The current ratio (2.23, 3.32 and 2.59 in 2008, 2007, and 2006 respectively) and quick ratio (1.49, 2.42 and 2.07 in 2008, 2007 and 2006 respectively) are both decreasing indicating that the company is losing its ability to meet its short term obligations. This is the result of decreasing current assets (loss of cash and highly liquid cash equivalents) and increasing current liabilities (mainly notes payable and accounts payable). Although this may seem worrying, Barrick seems to be allocating lots of capital (generated through day-to-day operations as reflected in increasing cash from operations (CFO)) towards its investing expenditures. Examples of heavy investing includes the initiation and construction of three new mines (Buzwagi, Cortez Hills, Pueblo Viejo) with potential gold reserves of 3 million ounces a year. Aside from that, CFO is influenced by market prices for commodities such as copper and silver (by-products of gold mining). If their prices decrease, CFO will reduce which Barrick hopes to offset by increasing gold production. Solvency Leverage With regards to their solvency and the ability to meet long term obligations, Barrick has been relatively stable as indicated through their debt-to-equity ratios (0.51 in 2006, 0.44 in 2007, and 0.58 in 2008). This is a good sign because, at a time when both short and long term investments are increasing, Barrick has managed to retain their liabilities to reasonable levels. This is also a further reinforcement of their strategy of pumping as much cash (mainly from income and equity) for their investments. Interest coverage is another interesting point to consider. According to the financial statements, the interest coverage ratio has increased drastically in 2009 (15.71, 13.92, and 66.48 in 2006, 2007, and 2008 respectively). This hike would be reflective of their improved ability to pay interest (the cost of borrowing), but the actual interest incurred has remained quite stable over the years (Annual Report, p.52). The main difference is that Barrick has increased the proportion o f interest costs that it capitalizes within their property, plant, and equipment (PPE). Barrick also uses its gold inventory and mines as a form of leverage. Due to the current financial turmoil, gold prices are at record highs as investors demand more gold (a safe haven) to hedge against capital losses. The increasing cash flows and inventory values presented Barrick with an exceptional chance to attract investors as well as issue debt to support the creation of mines to increase their gold production. Barrick thus promised high returns to their investors through expectations of rising gold prices to mitigate any potential risks. Performance Evaluation We can look for several different financial ratios to evaluate their overall performance. Barricks earnings per share (EPS) have been decreasing over the last three years (1.79, 1.29, and 0.90 in 2006, 2007, and 2008 respectively). This is the result of a sharp decrease in net income due to the financial crisis, coupled with the issuance of more shares in 2009. That being said, Barricks basic and diluted EPS are fairly similar ensuring a very low risk of dilution because there are not a lot of dilutive hybrid securities that could be exercised. Another effect of decreased net income is the decline in the profit margins. However, Barricks gross margin has been quite consistent at the 0.5 mark. This tells us that although revenue is steadily increasing, the direct unit costs for generating that revenue have been increasing proportionally to a level where cost of sales (value of mined gold) is half the revenue. The reason for seeing diminishing profit margin with a consistent gross ma rgin is the increase in write-downs and impairment of assets and investments, along with higher development expenses and amortization. Efficiency is another measure of performance evaluation. Barricks efficiency in using its equity to generate income has been declining since it has generated about $0.17 of income for every dollar of equity in 2006 versus on $0.05 in 2008. Their assets capability for generating revenue has also decreased from 0.11 in 2006 to 0.03 in 2008. The reason for such low returns on equity and asset is the inherent nature of the mining industry which requires the expenditure of large amounts of capital to finance expansion (which it is doing now for the three new mines). This is essentially decreasing returns in the present with the expectation of seeing increases in the future. As far as dividends are concerned, Barrick is considered a safe bet because of the increasing demand for gold, along with potential rise of its future gold reserves. The positive trend is emphasized through the increases in the dividend pay-out ratio; 0.13, 0.23, and 0.44 in 2006, 2007, and 2008 indicating higher proportions of net income paid to shareholders. Despite the economic downturn and decreasing net income, Barrick still managed to increase the dividends per share every year (11Â ¢ in 2006, 15Â ¢ in 2007, 20Â ¢ in 2008, and 40Â ¢ in 2009) due to its immensely positive future outlook. This also portrays the companys confidence in their cash flow, because although cash balance is decreasing today, the main reason is the outflow towards capital investments. Industry Comparison In comparison to the industry, Barrick has the only A rated balance sheet illustrating very low risk, along with stability as a result of having the largest market capital, gold reserves and production. All companies in this industry have seen decreasing levels of cash due to large increases in capital expenditure. In addition, the current ratio has decreased over the past few years for all three companies indicating a trend of poorer liquidity in the industry. However, companies seem to be different with regards to their solvency and leverage. For example, Goldcorp has seen decreasing levels of debt to equity while Newmonts have almost doubled since 2005. Despite variable trends, most gold companies are consistently providing stable dividends as they still continue to see net income on their statements rather than net losses, despite the deep financial crisis. Goldcorp, especially, have seen their income increase by as much as $1 billion in 2009. Conclusion Overall, Barrick Gold is a relatively stable and reliable company. Their business strategies and global focus contributed to their expansion over the years. Just like many of its competitors, Barricks debt has grown over the past few years but it is still considered a safe company for investors with reasonable risk. Furthermore, IFRS conversion will significantly impact the company as the entire reporting process of financial statements along with internal control procedures and information system will all change. This analysis has revealed that Barrick Gold seems to have a successful combination of policies and strategies, therefore making them far more superior than its competitors. Bibliography Sedar (2009) Barrick Gold Corporation Database. November 19, 2009. https://www.sedar.com/DisplayCompanyDocuments.do?lang=ENissuerNo=00000923 Business Week (October 13, 2009) Marcial: The gleam in Barrick Gold. November 21, 2009. https://www.businessweek.com/investor/content/oct2009/pi20091013_849577.htm Barrick Gold Corporation (2009) Annual and Quarterly Reports. November 19, 2009. https://www.barrick.com/Investors/AnnualQuarterlyReports/default.aspx Canadian Business (October 29, 2009) Barrick Gold posts US $5.4 Billion net loss on windup of gold hedging program. November 19, 2009. https://www.canadianbusiness.com/markets/market_news/article.jsp?content=b291772219 Google Finance (2009) Barrick Gold Corp. November 19, 2009. https://www.google.ca/finance?q=abx Corporate Information (2009) Barrick Gold Corporation Company Snapshot. November 20, 2009. https://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C124BA230 Wiki Invest (2009) Barrick Gold Corp. November 21, 2009. https://www.wikinvest.com/special/Companies