Accounting for companies Term Paper Example | Topics and Well Written Essays - 1000 words

Accounting for companies - Term Paper Example The fair value method or the cost method is used in cases where the company’s ownership is 20% and below. In this method, the company has no significant influence on the operation and control of the subsidiary and will record the investment at cost. Here, the company will record the investment on the balance sheet at cost and will not be concerned with the valuation of the specific assets and liabilities. The dividends that are earned from the investment will be credited in the income statement of the holding company while losses will be debited to recognize and account for the impact (FASB, 2007). Since the company has no rights on dividends on the investment unless declared, it will not record any dividends on the balance sheet of the company. In cases where the investment is in the form of marketable securities, the accounts will be adjusted to reflect the fair value at the end of each financial year (FASB, 2007). Equity securities that are not tradable are classified as av ailable for sale in the balance sheet. Despite the lack of control on the purchased investment, many companies enter into such investment in order to earn lucrative dividends. This income could be then invested in other projects to enhance the value of the holding company. At the same time, a company might venture in such investment in order to earn capital gain from the increasing share prices. The second method, equity method, is applied in the case where the investing company buys between 20% and 50% control on the subsidiary (IASB, 2011). This proportion is considered significant in influencing the operation of the subsidiary in as much as it is not sufficient in having exclusive control. The holding company will account for the investment as an associate. The purchasing company will record the investment at cost in the balance sheet i.e. the original purchase cost is used. This

IB Biology Substrate Specificity of Digestive Enzymes Planning Essay

IB Biology Substrate Specificity of Digestive Enzymes Planning Investigation - Essay Example There are two proposed mechanisms by which enzymes specificity can be put forward, 1) Lock and key model; where substrate act as key for enzyme as lock or in other words enzyme possess specific grooves where only specific substrate can be fixed 2) Induced fix model; where enzyme creates site for substrate when it comes in contact with it. In the given experiment we will investigate the substrate specificity of enzyme amylase towards its substrate Starch. We will also investigate the effect of various physical parameters like temperature, pH, enzyme concentration etc. 3. Hypothesis: Amylase has absolute specificity toward starch and will not act on any other polysaccharides. Similarly rate of conversion of starch to glucose is highly influenced by various factors like temperature, enzyme concentration and pH. The tubes were arranged and 5ml of Starch, Cellulose and glycogen solution was added to them and incubated at 37C in water bath for 2-3min to allow the temperature of solution reach to 37C (water bath was switch on before experiment was started and was at set temperature). Tubes were observed for red to brick red color indicating liberation of glucose. Appropriate blanks were kept to validate overall experimental procedure that includes Starch solution without amylase, tubes without starch or substrate etc. Development of red color indicates activity of Amylase and thus generation of glucose. 7. Control variables: Temperature: Test tubes were arranged as mentioned earlier and 5ml of starch solution was added to them. Three different temperatures were used in this experiment. The water baths were set at 20C, 37C and 45C. When the substrate attained the temperature, 1ml of saliva was added to each tube and further incubated for 15min. After incubation few drops of benedict's reagents were added to each and further incubated for 5 min. Color development was observed as above and noted.