Sex Trafficking And The United States - 1672 Words

Oftentimes when people hear the term human sex trafficking, they think of heinous acts that take place in other countries where adults, children, girls and boys are exploited to perform sexual acts in exchange for money or goods against their will. They think it typically occurs in places that are less developed than the United States. However, the reality of this horrific crime is that it is taking place in the United States, and it occurs more and more each and every day. Young girls are not solely the victim of human sex trafficking, young boys are victims of this monstrous act as well. Individuals residing in the United States need to be made more aware of this issue as it has started to rise through social media, large events, and by those in other countries being promised work here. After researching, it is apparent that there is a great deal of information that is lacking, on sex trafficking in the United States. Not only is sex trafficking an issue, but the lack of awar eness about sex trafficking is also an issue. This thesis proposes that human sex trafficking is an unacknowledged epidemic within the United States, and it seeks to discover why it has become so prevalent. Introduction When people think of slavery they think of what took place in America 150 years ago when Africans were sold against their will, beaten, and forced into labor. Slavery is reflected on as a thing of the past, but the sad reality is that in the United States alone, there areShow MoreRelatedSex Trafficking And The United States1405 Words   |  6 Pagesthat there were 4.5 million victims trapped in forced sexual exploitation, or sex trafficking, globally. Most would believe that this is a problem that does not occur in the United States, but they would be wrong. In 2007 alone, 14,588 sex trafficking cases were reported in the United States and the problem is only getting worse. This research paper will discuss multiple topics such as the definition of sex trafficking, recruitment and those at risk, where it occurs, organizations, consequences,Read MoreSex Trafficking And The United States1158 Words   |  5 Pagesprominent problem in my hometown, which was Sex Trafficking (ST). Comi ng from Houston, Texas, Sex Trafficking is one of the major hubs in the United States. Houston’s main highway I - 10 is the main road used to travel these victims to state lines to get them out of the country. A better definition of sex trafficking is when someone uses force, fraud or coercion to cause a commercial sex act with an adult or cause a minor to commit a commercial sex act. A commercial sex act is a list of things known as prostitutionRead MoreSex Trafficking Within The United States1355 Words   |  6 PagesBetween 14,500 and 17,500 victims are trafficked into the United States annually, and often, the average age of entry is thirteen to fourteen years old (Hodge, 2008). One victim recalls that her pimp, a man who controls sex workers and keeps the earnings, would take her and two other girls from the ninth grade out of school during lunchtime, have them do calls, and bring them back. She explains, â€Å"He knew how to read each girl—this one likes to par ty, that one needs a job, this one wants drugs.† ByRead MoreSex Trafficking Throughout The United States2098 Words   |  9 PagesSex Trafficking Introduction: When looking for topics to research I wanted to do something that was a prominent problem in my hometown, which was Sex Trafficking (ST). Coming from Houston, Texas, Sex Trafficking has the 2nd largest home in Houston. The main highway I - 10 is the main road used to travel these victims to state lines to get them out of the country. A better definition of sex trafficking is when someone uses force, fraud or coercion to cause a commercial sex act with an adult or causeRead MoreDomestic Human Sex Trafficking in the United States1300 Words   |  6 PagesDomestic Human Sex Trafficking in the United States Human sex trafficking and its sister category, Domestic Minor Sex Trafficking also referred to as DMST, (Kotrla,K. 2010) is the most common form of modern day slavery. In the United States there are an estimated 293,000 youth who fall under high risk factor or DMST (Walker-Rodriguez, A. Hill, R. 2011). Many men prey on the at risk youth to make a fortune for themselves. DMST exposes the youth to a life filled with violence, abuse that is bothRead MoreEssay on The New Slave: Sex Trafficking in America910 Words   |  4 PagesThe New Slaves: Sex Trafficking in America When most Americans hear the term ‘sex trafficking’ thoughts of helpless women and children in poor, developing, countries come to mind. However, most Americans would be downright shocked and dismayed to learn that many victims of sex trafficking reside right here in the United States. Moreover, many of the victims of sex trafficking in America were victimized by other Americans. This is a pressing national issue to which neither small, rural towns or largeRead MoreProstitution, The Act Of Prostitution1324 Words   |  6 Pages Prostitution, the act of â€Å"providing or receiving sexual acts, between a prostitute and a client, in exchange for money or some other form of remuneration† (Hock 557). The idea of exchanging sex for valuables has been seen since the beginning of human society; the first reported data about prostitution was reported around 3000 B.C.E in one of the first known civilizations, Mesopotamia (Caraboi and Fierbinteanu 362). Also, prostitution is often referred to as â€Å"the world’s oldest profession.† TodayRead MoreVictims of Trafficking Protection Act Essay1716 Words   |  7 Pagesfeature to the VTVPA is that the United States will penalize countries if they do not comply with the VTVPA (Holman, 2009). This is an imperative feature and I think that it should be implemented throughout every single piece of legislation that deals with trafficking. Countries should be held accountable if they do not comply. The only way that sex trafficking can be officially over is if every single country complies with all the legislation. The United States looks at six different factors whenRead MoreThe Problem Of Child Sex Trafficking1199 Words   |  5 PagesChild Sex Trafficking Have you ever walked into Wal-Mart and taken the time to look at the numerous pictures of missing youth that is plastered on the wall? When looking at how long they have been missing, it ranges anywhere from months to years. Looking at their age, both boys and girls, it is hard not to wonder if these kids are being trafficked. Child sex trafficking, also known as human trafficking, is a major issue that is not only plaguing the United States, but the world. ResidingRead MoreSex Trafficking : A Common Issue For A Long Time1394 Words   |  6 Pages Sex trafficking can happen everywhere. People do not even realize when it is happening. Someone could be living their life, just as they normally do, and decided to go to the mall. Sometimes they may not even know that a little kid is going to be kidnapped, and later raped. This is what sex trafficking is. Sex trafficking is commonly defined as when violence, drugs, lies, or any other form of coercion is used to force another perso n to have sex against their will. (Sex Trafficking in the U.S, 1)

Censorship Freedom Of The Press - 1746 Words

The press represents the voice of many individuals in the world. Censoring the press would signify the suppression of billions of voices that strive to be heard. Many definitions of press freedom have been provided by different scholars in many different scholarly sources. Dennis and Merrill (1991, p.5) defined freedom of the press as the right to communicate ideas, opinions, and information through the printed world without government restraint. On the other part, Sunwoo Nam and Inhwan Oh (1973, p.74), described freedom of the press as the freedom of the media to engage in the adversary role, being a vigilant and independent watchdog of the government, free to criticize the policies and personnel of the power elite without fear of†¦show more content†¦However, even a dictatorship does not have the power to completely minimize the role of the press. The press is used for the reflection of the dictator’s ideas and rules. Cuba and North Korea are known by many for their irrational restrictions on the press and freedom of expression. However, their approaches used in censorship are rather different with one being more or less severe. The press in North Korea is among the most suppressed worldwide. The news given to the media to broadcast comes from the official Korean News Agency. The government fully controls the content of North Korea’s newspapers, periodicals, and radio stations. â€Å"Korean Central Television is the state-run TV channel seen by North Koreans. The network carries news programs, documentaries, and other programs praising Kim Jong-il and his father Kim Il-sung. It also reports on authoritative statements from the North Korean government, party and military. In addition, it carries revolutionary dramas, operas and other entertainment programs† (North Korea s tightly controlled media). The information that reaches the public is completely monitored by the country’s leadership. The Internet is highly suppressed, it confines individuals to censored networks that have no connection to a world outside of North Korea. Even though it is unknown how many individuals have access to the Internet, the number is expected to be small given that â€Å"the country has only

The 2007 to 2011 Financial Crisis Causes, Effects and Lessons Free Essays

Abstract This paper provides a brief examination of the immediate causes and effects of the 2007 financial crisis, as well as an overview of lessons learned from it. I conclude that failure to properly regulate and supervise financial institutions set the stage for the crisis, while the US residential mortgage boom and bust triggered it. A credit freeze, bankruptcies, and hundreds of billions in government rescue ensued, resulting in a general economic downturn. We will write a custom essay sample on The 2007 to 2011 Financial Crisis Causes, Effects and Lessons or any similar topic only for you Order Now The legacy of the crisis should be seen as an opportunity to revise the financial system as a whole. Introduction The financial crisis that started in 2007 is the result of complex, interconnected, and simultaneous developments[1]. As such, I focus my analysis on the United States[2] and two distinct direct causes: (1) erroneous bank regulation – which destabilized the financial system – and (2) the pre-crisis real estate boom and bust. Whereas the former conditioned the crisis, the latter was its catalyst. In this brief essay, I discuss only the most important and immediate effects of the crisis – those that emerged between 2007 and 2012 – and discuss the conclusions that can be drawn accordingly. 1. Regulation destabilized the financial system Regulation of US banks by the Fed, SEC, and FDIC,[3] as well as other regulatory agencies, contributed significantly to the erosion of financial system stability (Barth, Caprio and Levine, 2012, p.86). For example, in 1996, the Fed legitimized the use of Credit Default Swaps (CDS) as risk-hedging instruments (Levine 2010, p. 202, Appendix 1) and as a result many banks developed massive exposures (Figure 1) – AIG held over $500 billion in 2007 – while others were able to reduce their capital reserves by up to half in percentage terms (Barth, Caprio and Levine, 2012, p.92). Figure 1: CDS market volume Q1 2001 to Q2 2007, trillion US$ (International Securities and Derivatives Association cited in Baily, Litan and Johnson, 2008) Another example is the SEC’s use of the â€Å"NRSRO† designation,[4] which led to a serious misalignment of credit rating agencies’ business incentives and resulted in inflationary provisions of investment-grade ratings for risky securities. This further deteriorated the viability of banks’ balance sheets (see Appendix 2). 1.1 Residential mortgage boom and bust Simultaneously, the US residential real estate bubble (inspired by the assumption that housing prices would only go up) fueled excessive issuance of home mortgages (Figure 2). In turn, unsound lending practices, especially in sub-prime mortgage lending, bolstered housing prices by pushing demand, while filling institutions’ balance sheets with unrecognized risk (Barth 2009, p.92). The attractiveness of mortgages as â€Å"fail-safe† investments prompted many banks to shift their business model from â€Å"originate-to-hold† to â€Å"originate-to-sell†; instead of buying mortgages as an investment that generated a steady cash flow, banks securitized and sold them (Barth 2009, p.22). This effectively removed any incentive to analyze and control risk. However, this â€Å"out-of-sight-out-of-mind† mentality did not account for the fact that banks that securitized mortgages and invested in mortgage-backed securities (MBS) were often identical. Thus, risk w as absent from balance sheets, but implicitly present in securities holdings (Appendix 3). Figure 2: SP-Shiller housing prices index (monthly), January 2001 to August 2012 (Standard Poor’s Financial Services LLC, 2012) The convoluted system of securitization faltered when housing prices started to decline and mortgage borrowers defaulted (Figure 3). This dried up the cash flow of mortgage-backed securities and made them virtually worthless; banks that relied on them to meet their obligations encountered trouble. Moreover, complex securitization practices made the extent of any one institution’s exposure anyone’s guess. Since, no one could be certain which banks would live to see another day, interbank lending froze. In short, not only did financial institutions possess worthless assets, but they were also unable to bridge shortages in cash (Figure 4).[5] In addition, mass defaults activated billions of dollars in CDS obligations and bankrupted all who were over-exposed. Figure 3: Increase of delinquency rates (percent) of subprime loans between 2003 and 2007 (Arentsen, Mauer, Rosenlund, Zhang and Zhao, 2012, p.39) Figure 4: Increase of the Federal Funds rate (percent, monthly) indicates interbank lending crisis (Federal Reserve Bank of St. Louis, 2012) 2. Financial collapse and economic downturn The immediate effects of the crisis are well known. Banks previously considered untouchable filed for bankruptcy (e.g. Lehmann Brothers), while others were acquired (Merrill Lynch by Bank of America), bailed-out, or taken over by the government (AIG and the GSEs Fannie Mae and Freddie Mac). Soon, the credit freeze affected the remaining economy as financing investments and borrowing became increasingly difficult. For example, between 2007 and 2009, approximately 8.8 million American jobs disappeared, U.S. GDP fell by more than five percent from its pre-recession peak (Treasury 2012), and the SP 500 lost about 57 percent of its value (Lleo and Ziemba, 2011). Perhaps most famously, without governmental assistance, American automobile manufacturers GM and Chrysler would have become insolvent (Stewart 2012). Yet another legacy cost is the enormous government debt that resulted from rescues and other economic resuscitation programs (Barth 2009). The crisis spread internationally (and most damagingly to Europe) because substantial loan derivatives were sold abroad. This does not imply that the U.S. is to blame for the crisis; every government had access to the same information as Fed, SEC, and FDIC, yet nearly all failed to recognize and address the systemic problem (Cox, Faucette and Lickstein, 2010). 4. Lessons Mostly importantly, the crisis exposed the colossal failure of bank regulators,[6] and prompted a fundamental restructuring of banking regulation (such as the 2010 Dodd-Frank Act). In addition, the excessive complexity and behemoth size of the financial system have come under intense scrutiny. An important question has emerged from this examination, which asks, considering TARP[7], are some financial institutions â€Å"too big to fail?† (Greeley 2012). Moreover, the crisis has spawned a reexamination of the desirability of â€Å"laissez-faire† within the financial markets – that is, to what degree can market forces be relied upon to avert crises (Barth, Caprio and Levine, 2012, p.90)? Conclusion The financial crisis that began in 2007 still troubles us today. While some financial institutions have collapsed, those that remain have had to fundamentally rethink their role as credit providers. Governments were left with tremendous financial commitments, tasked with deconstructing the moral hazard of bank bailouts, and with regulating and supervising the financial system more efficiently. History has shown us that financial crises are a cyclical occurrence. Thus the question must be, can the cycle be broken, or is the next crisis waiting in the wings? Bibliography Arentsen, E., Mauer, D.C., Rosenlund, B., Zhang, H.H., Zhao, F., 2012. Subprime Mortgage Defaults and Credit Default Swaps. [pdf] University of British Columbia Sauder School of Business. Available at: [Accessed 25 November 2012]. Baily, M.N., Litan, R.E. and Johnson, M.S., 2008. The Origins of the Financial Crisis. [online] Brookings Institution. Available at: [Accessed 25 November 2012]. Bank of International Settlement (BIS), 2012. Detailed tables on semiannual OTC derivatives statistics at end-June 2012. [online] Available at: [Accessed 26 November 2012]. Barth J.R., 2009. The Rise and Fall of the U.S. Mortgage and Credit Market. Hoboken, New Jersey: John Wiley Sons, Inc. Barth, J.R., Caprio, G. and Levine, R., 2012. Guardians of Finance, making regulators work for us. Cambridge, Massachusetts: The MIT Press. Barth, J.R., Caprio, G. and Levine, R., 2012. Rethinking Bank Regulation, till angels govern. New York, New York: Cambridge University Press. Congressional Budget Office, 2012. Report on the Troubled Asset Relief Program—October 2012. [pdf]. Available at: [Accessed 25 November 2012]. Cox, J., Faucette, J. and Lickstein, C.V., 2010. Why Did the Credit Crisis Spread to Global Markets[pdf] The University of Iowa Center for International Finance and Development. Available at: [Accessed 25 November 2012]. Federal Reserve Bank of St. Louis, 2012. Effective Federal Funds Rate (FEDFUNDS). [online] Available at: [Accessed 26 November 2012]. Greeley, B., 2012. The Price of Too Big Too Fail. Bloomberg Businessweek, [online] Available at: [Accessed 26 November 2012]. Jickling, M., 2009. Causes of the Financial Crisis. [online] Congressional Research Service. Available at: [Accessed 25 November 2012]. Kohn D.L., 2010. The Federal Reserve’s Policy Actions during the Financial Crisis and Lessons for the Future. [online] Board of Governors of the Federal Reserve System. Available at: [Accessed 25 November 2012]. Levine, R., 2010. An autopsy of the US ?nancial system: accident, suicide, or negligent homicide, Journal of Financial Economic Policy. [online] Available at: [Accessed 25 November 2012]. Lleo, S. and Ziemba, W.T., 2011. Stock Market Crashes in 2007-2009: Were We Able to Predict Them[pdf] Available through Social Sciences Research Network website [Accessed 25 November 2012]. Pagliari, S. and Young, K.L., 2012. Leveraged Interests: Financial Industry Power and the Role of Private Sector Coalitions. [pdf] Available at: [Accessed 25 November 2012]. Standard Poor’s Financial Services LLC, 2012. SP Dow Jones Indices. [online] Available at: [Accessed 25 November 2012]. Stewart, J.B., 2012. When Debating the Auto Bailout, Consider Lehman’s Fate. The New York Times, [online] 9 March. Available at: [Accessed 25 November 2012]. U.S. Department of the Treasury, 2012. The Financial Crisis Response In Charts [pdf] Available at: [Accessed 26 November 2012]. Appendex Appendix 1 A CDS is a derivative that enables the buyer to claim compensation from the seller if the underlying asset (such as a Mortgage Backed Securities or MBS) defaults. While useful for hedging purposes and as assessment tool for credit risk (a rising CDS premium indicates increasing risk for the underlying asset), it can be misused for speculative investing, as it does not require the buyer (or the seller) to actually hold the underlying asset. Appendix 2 The SEC required every issuer of a new security to acquire a risk rating from a NRSRO in order to enable potential buyers to assess its risk and allow regulators to determine capital requirements (which were based on risk-adjusted assets). Those credit rating agencies privileged enough to have received NRSRO designation (namely the big three, SP, Moody’s, and Fitch) slowly realigned their business models to accommodate issuers’ needs to purchase ratings by incentivizing employees to issue AAA ratings in order to grow the customer base. As a result, 56 percent of MBS issued between 2005 and 2007 and rated by SP were eventually downgraded (Barth 2009, p.156). Appendix 3 A common practice in the precursor to the crisis was to package mortgage loans into asset-backed securities (ABS, most notoriously, collateralized debt obligations or CDOs) and other securities according to tranches. These tranches were associated with different degrees of risk in order to cater to different investors. Oftentimes, ABS were re-packaged into CDOs squared and cubed. The common misconception prevailed that this would reduce risk by spreading it. In the wake of the crisis, with default rates skyrocketing, it became apparent that this system had become too complex for anyone to unravel, thus making any exposure assessment impossib [1] Rapid economic growth in BRIC countries, and the resulting flood of rent-seeking financial assets, mishaps in bank regulation and supervision, immoral business conduct of key-stakeholders, or the general failure to recognize the emergence of a bubble all conditioned each other and shaped the environment that resulted in the most severe meltdown since the Great Depression. [2] Though the financial crisis was markedly a global phenomenon, the United States were at the epicenter in terms of both causes and effects (Jickling 2009). [3] Federal Reserve Bank, Securities Exchange Commission, and Federal Deposit Insurance Corporation, respectively all regulate and supervise different (but sometimes overlapping) aspects of the US banking system (Barth, Caprio and Levine, 2012). [4] NRSRO – Nationally Recognized Statistical Rating Organizations. [5] To put the extent of the liquidity crunch into perspective, the Federal Reserve reacted by purchasing approximately US$1.25 trillion worth of securities (including Treasuries) between 2007 and 2010, compared to US$15 billion over the years prior (Kohn, 2010). [6] This is not to put blame solely on government agencies: Regulators and supervisors were heavily influenced by financial services lobbies (Pagliari and Young, 2012). [7] The Troubled Assets Relieve Program (TARP) is a government program that disbursed approximately US$431 billion to save financial institutions and other business from bankruptcy (CBO 2012, p.1). How to cite The 2007 to 2011 Financial Crisis Causes, Effects and Lessons, Essay examples

Applying International Financial Reporting - Myassignmenthelp.Com

Question: Discuss About The Applying International Financial Reporting? Answer: Inttoducation The primary purpose of the report is to place emphasis on the impairment testing of the asset for Fleetwood Corporation Ltd. The report will additionally address the impairment expenses incurred during the period with key important assumptions that is used by Fleetwood corporation in performing the impairment testing. As evident from the current annual report of Fleetwood Corporation Ltd, it is noticed that the firm for the purpose of impairment has tested Goodwill. To carry out the impairment testing Fleetwood Corporation has allocated goodwill for the purpose of impairment in the cash-generating unit that is anticipated to benefit organization from the synergies of the combination. The cash generating unit of Fleetwood Corporation Ltd to which the firm has allocated goodwill for impairment is conducted on annual basis or more constantly when there is an indication that the organization might be impair (fleetwoodcorporation.com.au 2018). If it is noticed that the recoverable value of the cash generating unit is lower than the carrying value, then the impairment loss is allocated to initially to lower the carrying value of the goodwill (Horton 2018). This means that the impairment loss is allocated to the unit and later to the other assets based on the prorate basis to the carrying value of each asset in the unit. During the financial year of 2017, the company recorded the impairment expenditure for the following Intangible assets and goodwill: In the financial year of 2017 the company reported an impairment expenditure stood $10.3 million relating to the impairment of goodwill and intangible assets in the areas of parts and accessories. Impairment expense on Property, Plant and Equipment: In the financial year of 2016-17, Fleetwood Corporation Ltd has reported the impairment expenditure on property plant and equipment for $19,680 (fleetwoodcorporation.com.au 2018). The key assumptions and estimations that is by Fleetwood in carrying out the impairment testing is stated below; In ascertaining whether the goodwill is impaired needs an estimation on the value of the cash generating units to which goodwill is allocated except during the circumstances where the fair value is determined following the subtraction of cost to sell the asset (Hoyle, Schaefer and Doupnik 2015). The value that is used in the computations needs the directors estimations of the future flow of cash that is anticipated to originate from the cash generating unit and the appropriate rate of discount is applied to compute the current value. Under IAS 36 of the Impairment of Assets, it is understood that the asset impairment is the typical standard and requires a subjective interpretation. The subjective interpretation is applicable with respect to the managerial requirements and does not restricts the creative accounting (Huang 2014). As evident from the financial reports of Fleetwood Corporation Ltd, there was the existence of subjectivity at the time of performing the impairment testing of goodwill and non-current assets (Hoskin, Fizzell and Cherry 2014). Subjectivity influence the outcome of the impairment since it is carried out on the discretion of the management in deriving the computable value of the recoverable amount when there is no availability of the current market price. One of the interesting fact that is found regarding the impairment testing is that the amount on which the carrying value of the asset or cash generating unit goes past the recoverable value (Marshall 2016). A better understanding has been gained regarding the organizations assets following the impairment having the market value of the asset listed on the balance sheet of the firm. Interestingly assets such as goodwill and long term assets are generally tested for impairment since the carrying value has long span of time for impairment. Fair value can be defined as the framework that requires significant amount of disclosure associated to the fair value measurement (Macve 2015.). The IASB has used the fair value tool to improve the disclosure for fair value in such a manner that the users would be better able to determine the techniques of valuation and inputs that are put into the use to measure the fair value. According to Hemmer and Labro (2016), it is noticed that several organizations using the US GAAP or IFRS is impacted by the changes in the accounting. Currently, organizations under the US GAAP or IFRS have commitments and leased assets that amounts approximately 3.3 trillion and around 80% of the organizations does not reports the leased assets in the balance sheet since they are treated as operating lease. In order to compensate, the investors usually considers the estimates that are not consistent, incorrect and unparalleled calculations. Hence, it can be stated that previous accounting standards does not provides the appropriate economic reality. Leasing is considered as the most common source of finance for numerous business especially in the shipping and airline industry. In the present accounting standards around 85% of the lease is recorded as the operating lease and it is not incorporated in the balance sheet. Even though it is not recorded in the balance sheet there is no doubt that, the operating lease results in real liabilities (Kabir, Rahman and Su 2017). During the financial crisis a large number of retail chains have been bankrupt because they were not able to adjust quickly in the new reality of the economy. These organizations large value of long term lease commitments with misleading balance sheet. Consequently, this resulted the lease liabilities in the off-balance sheet greater than 66 times than the reportable amount of debt. Hence it can be stated that accounting fails to reflect economic reality. The argument of chairperson bought forward that the present lease accounting lacks the comparability (Gale and Larner 2017). Consequently, the airline company leases numerous airplane, which is different from the competitor and borrows highly to acquire a large number of lease in spite of their obligations associated to finance may appear similar. Therefore, there isnt any level field among these companies. According to the international accounting standard, it is understood that the new standard is regarded as controversial (Visvanathan 2017). The reason behind this is that change is expected to approximately result an effect on most of the listed firms and would not be regarded prevalent. An important consideration about the unpopularity of accounting standard is because of the controversial nature of the standard. The standard might face warnings associated with the opposing financial impact for changes in the accounting system. The reportable value of the profit after tax for the organization might be lowered during the beginning period of lease (Picker et al. 2016). With the incorporation of the new financial standards the financial ratios of the firm might suffer. Furthermore, the gearing ratio is anticipated to suffer more with greater value of debt on the balance sheet. Additionally, for several firms the application of the new accounting standard is considered to be expensive and might need greater amount both internal and external sources. As per the IASB on evaluating the possible risk prudently, it is understood that risk and cost can be administered. According to the IASB the IFRS 16 would lead the leasing industry to be out of the business and lease continuous to remain attractive as the flexible source of fund. According to the IASB it is not likely that the enhanced visibility of lease obligations might lead to noteworthy effect in cost related to lending and debt covenants. There might be cost that are associated with the updating of system for impairment under IFRS 16 (Visvanathan 2017). As per the IASB the standard aims at increasing the transparency associated to liabilities which was not stated earlier in the balance sheet until the users of financial report gains better understanding of the organization. Accordingly, it is understood that the enhance lease visibility would result in noteworthy effect on cost associated with lending and debt covenants. Reference List: Fleetwoodcorporation.com.au. (2018).Fleetwood Corporation Limited - Home. [online] Available at: https://www.fleetwoodcorporation.com.au/ [Accessed 18 Jan. 2018]. Gale, T.M. and Larner, A.J., 2017. Six-Item Cognitive Impairment Test (6CIT). InCognitive Screening Instruments(pp. 241-253). Springer International Publishing. Hemmer, T. and Labro, E., 2016. Productions and Operations Management Management Accounting. Horton, J., 2018.Advanced Financial Accounting and Reporting: Theory, Practice and Evidence. Routledge. Hoskin, R.E., Fizzell, M.R. and Cherry, D.C., 2014.Financial Accounting: a user perspective. Wiley Global Education. Hoyle, J.B., Schaefer, T. and Doupnik, T., 2015.Advanced accounting. McGraw Hill. Huang, Z., 2014. Advanced Financial Accounting. Kabir, H., Rahman, A.R. and Su, L., 2017. The Association between Goodwill Impairment Loss and Goodwill Impairment Test-Related Disclosures in Australia. Macve, R., 2015.A Conceptual Framework for Financial Accounting and Reporting: Vision, Tool, Or Threat?. Routledge. Marshall, D., 2016.Accounting: What the numbers mean. McGraw-Hill Higher Education. Picker, R., Clark, K., Dunn, J., Kolitz, D., Livne, G., Loftus, J. and Van der Tas, L., 2016.Applying international financial reporting standards. John Wiley Sons. Visvanathan, G., 2017. Intangible assets on the balance sheet and audit fees.International Journal of Disclosure and Governance,14(3), pp.241-250.