How Propaganda Helped the Nazi Government to Control Germany Essay Example for Free

How Propaganda Helped the Nazi Government to Control Germany Essay The Nazis used propaganda in many different ways. They closed down all the opposing newspapers available to German people controlled by Nazis. This means that the Germans only read good things about the Nazis they couldn’t see all the malicious things they had been doing. Radio stations were to broadcast Nazi programmes featuring speeches by Hitler and German antisemitic music. There were many Nazi parades and rallies. There were posters everywhere, these emphasized the strengths and the positive things about Nazis, however, they could be easily ignored. Speeches by Hitler could be heard on loudspeakers in many places, this made people respect and admire him. Foreign films were banned and new antisemitic Aryan films were made, showing all the Nazi achievements and advertising antisemitism and Arianism. This also emphasized the strengths of Hitler, the Nazis and Aryan Germany. The Germans only saw the fabulous things about the Nazis, some people were oblivious to the horrible and wrong things going on and many people agreed with it. People didn’t like Jews. Hitler and the Nazis built on this hate, saying that they were to blame for Germanys decline. Hitler wouldn’t let anybody see the whole picture, he used positivity, made Germans proud.The Nazis incinerated all non-German, Jewish and communist books. Hitler rewrote school books to say wonderful things about Aryans and the Nazis, this made the children admire him and the boys want to be like him.The Germans arrested all the people that said anything unwanted about Hitler or the Nazis. People were encouraged to denounce each other, neighbors, friends and family. They also arrested all the opponents such as communists, Jews and anti-Nazis. Anybody that might make people think bad of the Hitler and the Nazis were punished: arrested, sent to camps, a lot of people were exterminated. Free short-range radios were given out so Hitler could be in everyones homes and so the people can’t listen to BBC speaking the wise truth!

Accepting an Expert Claim

Accepting an Expert Claim Argument Experts are individuals or organizations proved to be quite knowledgeable and have authority in a particular field. Most organizations prefer hiring and consulting experts in different skills and service delivery. However, this does not guarantee a perfect result for the organization or the company, as many factors may affect the service delivery by the experts. In such cases, the experts are bound to perform against the expectations. Business organizations explore various methods of making decisions that implement business operations. In this work, an argument is based on the following. This paper presents an argument about the expert claim in making decisions. In particular, the paper seeks to explain the rationality of accepting an expert claim in an event that the expert turn out to be erroneous. It is unreasonable to accept the expert claims without evaluating and examining such claims. Although experts are believed to be more knowledgeable in their areas of specialization, any person assigning duties by the expert remains accountable for their actions. In business, leader plays a great role in making business decisions which are more effective. For a business to succeed, it relies upon the decisions made by its leaders. Attaining skills in making effective decisions requires intuition, education and experience. According to Reynolds (2011), effective decisions should be interpreted, explained, evaluated and analyzed before being executed. Before accepting a claim from the expert, the claim should also be examined, analyzed and evaluate properly. Without paying attention to the above process, there is a risk of one facing the consequences of claim taken. Nevertheless, decision making in business involves the following steps. First is the identification of the problem. A specific problem must be revealed before attending to it. Identifying a specific problem enables one to identify a way of solving it. Secondly, the possible solutions for the problem should be well analyzed. This gives a wider range of options that can be considered. In fulfilling this, the decision maker will be able to compare the risks and consider a solution with the lowest risk. Accepting the claims from the experts without considering the risks and the alternatives is unreasonable. The third step is evaluating the probabilities closer to achieving the goal. At this stage, the decision maker can evaluate if the possible solution selected will assist in achieving the right decision. The forth step is making the actual decision (Hew Cheung, 2014). The decision is therefore made having considered many factors; therefore, failure to follow this reasonable process in making business decisions, errors are prone to occur. Business decision making should be a collaborative function that needs the contribution of the concerned parties. Experts in a specific field are to be consulted on the best way of executing a function. However, some experts may not be experienced enough to fulfill the requirements of a given task. Upon involving the experts in decision making, proper evaluation, examination and analysis should be done before a solution is adopted. Furthermore, no matter the position in an organization, each person is accountable his or her decisions. Thinking is a skill that is not naturally endowed but needs to be practiced (Ennis, 2015), and it is the responsibility of everyone to train his/her mind to think critically, and make sound decisions. Reasoning describes ones capacity to think rationally, and making the right business decisions require rational thinking. It is unreasonable enough to take in the opinions from the experts without examining such opinions through rational and critical thinking. References Ennis, R. H. (2015). Critical thinking: A streamlined conception. In The Palgrave handbook of critical thinking in higher education (pp. 31-47). Palgrave Macmillan US. Hew, K. F., Cheung, W. S. (2014). Improving Social Studies Students Critical Thinking. In Using Blended Learning (pp. 59-78). Springer Singapore. Reynolds, Martin (2011). Critical thinking and systems were thinking: towards a critical literacy for systems thinking in practice. In: Horvath, Christopher P. and Forte, James M. eds. Critical Thinking. New York, USA: Nova Science Publishers, pp. 37-68.

Dramatic Tension in The Crucible by Miller Essay -- Miller Crucible

Dramatic Tension in "The Crucible" by Miller The Crucible Coursework Excitement, nervousness, stress, anxiety, suspense, unease, and apprehension are all forms of dramatic tension that Miller creates throughout the Crucible. Dramatic tension is created by Miller throughout the Crucible in many ways. Straightaway, the title of the play, â€Å"the Crucible† implies to the audience of the tension that is to come in the play. Miller names the play â€Å"the Crucible† to represent the puritanical society of Salem, the historic people of Salem wanted to purify each other from the Devil’s work, they even went to the extent of killing their fellow neighbours in order to purify them. The variety of characters involved in the witch trials all combine to create suspense. Miller creates vivid personalities for the main characters in the play, the characters are contrasting and their relationships between each other create tension. Speech directions influence how the characters speak and act. The stage settings crafted by Miller create tension, especially in Act 3, in the court room scene where there is dramatic tension created by the characters arguing vigorously with each other. Miller uses the setting of â€Å"The Crucible† to create dramatic tension. The play took place in a newly made colony called Salem at the time of 1692. Miller describes the in such a way that it creates an atmosphere of tension throughout the play. Salem was surrounded by wilderness; some of Salem’s people were killed from tribes that were from these forests. The religious leaders were fiercely puritanical and protective of their religion, a form of protestant Christianity. The religious leaders were so zealous and paranoid about their religious be... ...to end the play, responding to Hale’s plea that she convince Proctor to publicly confess: â€Å"He have his goodness now. God forbid I take it from him!† Miller uses speech directions and descriptions of action in the play to create an atmosphere of tension throughout â€Å"The Crucible†. In the last page of the play Miller uses speech directions to show how desperate Hail is to stop Proctor from hanging himself, Miller shows him â€Å"dropping to his knees† to show his desperation. Hail does all he can to stop Proctor from hanging and surprisingly so too does Parris, this creates tension because even Parris, who hated Proctor, wants the ridiculous hangings to stop because they have gone out of control. Miller describes the beating of the drum rolls to create an atmosphere of suspense, the drum rolls are a gradual sign of the music of Proctor’s heroic yet tragic death.

Religion and Relationships in Christina Rossetti’s Work Essay -- Gobli

Religion and Relationships in Christina Rossetti’s Work Our dreams are commonly known as the subconscious manifestations of our inner desires. Creative writing, like dreams, can represent an outlet, a method of pseudo-fulfillment for those unrealized wishes or fears. In the case of much fiction, especially poetry, these hidden triumphs are often so subtle that the reader may not recognize the achievement or the repressed emotion to which it relates. Christina Rossetti is known as one of the primary female figures of the Victorian Period. The majority of her poetry falls into one of two categories: religion and relationships. Many of her poems on relationships included a theme of death, yet often centered on the relationship between the dead or dying and their loved ones. She wrote a number of poems on love, as well, but these often bring forth a sense of loss, avoidance, fear, or disbelief. Based on some of these love poems and the fact that she was reportedly in love twice during her lifetime, it seems clear that Christina Rossetti was no stranger to the desires of humanity. We, as people, tend to have a natural urge to be seen on a very personal level, to be understood for that which makes us unique, and to be loved in spite of these things. Rossetti’s â€Å"religious poetry acknowledged these longings and formed an outlet for them. Many of her ‘poems explore what she saw as the great danger that the Victorian cult of love and marriage posed to the souls of woman’† (Touchà © 4). She held very strongly to her faith and is reported to have turned down two men whom she dearly loved because of religious differences that she could not overcome. â€Å"As a deeply religious woman she was afraid somebody ‘could co... ...J. and Vivienne J. Rundle, ed. The Broadview Anthology of Victorian Poetry and Poetic Theory. Orchard Park: Broadview Press,1999. Everett, Glenn. â€Å"The Life of Christina Rossetti.† Victorian Web. 26 Nov. 2004. 14 Dec. 2004. . â€Å"Maid.† Webster’s New Collegiate Dictionary. 1976. Rossetti, Christina. â€Å"Promises Like Pie-Crust.† Net Poems. 2003. 13 Dec. 2004. . Touchà ©, Julia. â€Å"The Longing for Motherhood and the Concept of Infertility in the Poetry of Christina Rossetti.† Victorian Web. 26 Nov. 2004. 14 Dec. 2004. . â€Å"Virgin.† Def. 1a. Webster’s New Collegiate Dictionary. 1976. Womble, Alison. â€Å"Sappho and Christina Rossetti II.† Victorian Web. 26 Nov. 2004. 14 Dec. 2004. .

Great Expectations: Gods Law Vs. Human Law Essay -- Great Expectations

Great Expectations: God's Law vs. Human Law In his book Great Expectations, the problematic nature of moral judgement and justice that stems from a conflict between God's law and human law is one of several topical themes that Charles Dickens addresses. This paradox regularly surfaces in his treatment of plot and setting, and is more subtlety illustrated in his use of character. To facilitate the reader's awareness of such a conflict, the narrator often uses language that has Christian connotations when relating his thoughts and when giving descriptions of the environment, characters and events that take place. While these things allude to divine and moral law, the story itself revolves around crime and criminals, thereby bringing issues of human law into focus. The climate for this theme is established from the very beginning of the novel. Pip's act of Christian charity towards the convict can also be considered a serious crime. The story opens in a churchyard where the grave, symbolic of eternal judgement can be contrasted with the nearby gallows, symbolizing human punishment. Set on the eve in which we commemorate the birth of Christianity, an institution based on charity and love, Pip feels guilty for bringing food to a starving fellow human. Pip must steal food from his own family to help Magwitch, thereby transforming mercy and compassion into crimes. As Pip is running home, he looks back at the convict and sees him limping towards the gallows "...as if he were the pirate come to life, and come down, and going back up again" (27). This imagery conveys a complicated perception of guilt as something conscious of its own moral accountability, frightening and self-destructive. When Magwitch is caught, he gives a false confession to stealing the food from the Gargery's to protect Pip. Joe replies that he wouldn't want him to starve and that he was welcome to it. Pip highlights the conflict between divine and human law by comparing the Hulk that his convict is returned to as "a wicked Noah's ark" (56). Thus in these first few chapters, the ideals of justice, mercy, law, and punishment are intermingled and confused. This confusion is furthered by Mrs. Joe, who actually transforms charity into punishment. Her beatings, bullying and lectures of how she brought Pip up "by hand" at great personal sacrifice are a constant reminder ... ...er. In one short episode, Pip has described himself as a penitent, a prisoner, and a confessed wrongdoer. The conflict between Pip's own instincts regarding morality and conventional perceptions of justice and punishment is manifested as the guilt he is burdened with throughout his childhood and young adult life. Pip accumulates these feelings and attempts to suppress them throughout most of the story. At one point the narrator takes a moment to reflect on his guilty conscience: As I had grown accustomed to my expectations, I had insensibly begun to notice their effect upon myself and those around me. Their influence on my own character, I disguised from my recognition as much as possible, but I knew very well that it was not all good. I lived in a state of chronic uneasiness respecting my behaviour to Joe. My conscience was not by any means comfortable about Biddy. (256) He goes into great debt in his attempts to distract himself from this guilt, and drags his dear friend Herbert along with him (which he also expresses guilt about). His vain attempt to make reparations with his conscience by sending "a penitential codfish and a barrel of oysters

The Destructive Growth of Alcoholism in America

Drinking alcohol has become a past-time for teenagers and adults during weekends. People drink to relax, feel more confident or to forget temporarily any worries that they currently have. Everyone knows that alcohol in moderation do not harm one's body or society at large. The problem lies when drinking becomes uncontrollable and excessive. The social, health and mortality problems associated with alcohol have been perceived as early as 1920's, which was when the Temperance Movement started.The consumption of alcohol began in 1600-1700. People drank alcohol because they had no other alternative. The milk was unpasteurized and the water was unsanitary. In addition, the price of tea and coffee did not fit the budget of most people. According to the article What in American's history could lead to prohibition, â€Å"the average American was drinking 7 gallons of pure alcohol. † During the early years of the American colony, drunkenness was not viewed as offensive.The History of A lcohol article enumerated how people in the colonies â€Å"showed little concern over drunkenness, [in fact] spirituous liquors had become the greatest factors in colonial commerce. † Later on, the demand for alcohol created Saloons where people could drink and take part in different form of vices. The History of Alcohol article stated that â€Å"[i]t was not uncommon to find one saloon for every 150 or 200 Americans, including those who did not drink.Hard-pressed to earn profits, saloon keepers sometimes introduced vices such as gambling and prostitution into their establishments in an attempt to earn profits. † However, people soon realized that alcohol drinkers acted differently and far worse after they have consumed liquor. Prohibition or temperance, which simply meant a â€Å"reduction or elimination of the use of alcoholic beverages,† was enacted to combat these â€Å"social ills† that were developing due to the effects of alcohol.Hence, according t o the History of Alcohol, â€Å"[i]n 1920 America saw prohibition in an effort to prevent the social problems caused by alcohol abuse. † Thornton, an economics professor, expressed that during 1920-1933, â€Å"national prohibition of alcohol [in the US was a] ‘noble experiment'- undertaken to reduce crime and corruption, solve social problems, reduce the tax burden created by prisons and poorhouses, and improve health and hygiene in America. † Supporters of the Temperance Movement firmly believed that alcohol had â€Å" addictive properties.† In addition, the History of Alcohol stated that â€Å"the Temperance movement swept across the United States preaching that alcohol was immoral and destroyed family life. † The same article also says that the benevolent intentions of the Temperance Movement finally materialized when the government included the ban on alcohol in the 18th Amendment, which took away the business licenses of â€Å"brewers, distill ers, vintners, and the wholesale and retail sellers,† of the Constitution. Despite genuine concern about the negative effects of alcohol, liquor cannot be eliminated from the market.The History of Alcohol states that people started to bootleg alcohol from Canada, Mexico and the Caribbean- since Americans were prohibited from producing liquor- to cater to their growing customers. Organized crime was established to meet the increasing demand of the public for the prohibited product. According to the What in American's history could lead to prohibition article, the illegal nature of alcohol led â€Å"criminal organizations [to] resort to real crimes in defense of sales territories, brand names, and labor contracts. †Eventually, the government realized that their efforts only increased the reliance on alcohol and made the social ills imposed by it more severe. Therefore, they repealed prohibition in 1933. Even though the Temperance Movement was dissolved, the criminal group s that were formed out of it still remained intact. These groups â€Å"branched out into narcotics, gambling, prostitution, loan sharking and extortion, concerns they still control today,† according to The History of Alcohol article. Moreover, societal problems incurred from alcohol also affect family dynamics.Parents who constantly drink might end up spending more time outside the house and neglect their responsibilities to their children and spouse. Thus, the article entitled Scientific Facts on Alcohol brought up the point that â€Å"[d]rinking can impair how a person performs as a parent, [and] a partner as well. † Likewise, the Scientific Facts on Alcoholic indicated that â€Å"[t]he financial costs of alcohol purchase†¦ can leave other family members destitute. † This is because parents may end up using their salary to sustain their habit to the extent that their children become hungry in the process.Children of alcoholics may not be adequately taken care of as well because their basic needs, such as clothing and shelter, are not provided for because indulgence in the habit makes their parents lose focus on what is important in their lives. The detrimental effects of alcohol become exacerbated to the point that it manifests itself in physical violence or abuse towards other people. A relationship might be jeopardized because the man, as is usually the case, beats up his wife or girlfriend after consuming immense amount of liquor. The wife or girlfriend has a toleration limit in allowing this kind of dismal treatment.After awhile, she is bound to leave him if the behavior does not stop or improve. Information contained in the Alcohol and Women article provided by Loyola Marymount University states that â€Å"57% of female victims [experience] intimate violence (i. e. , current or former spouses, boyfriends, etc. ) [and] reported that the offender had been drinking at the time of the offense. [While] 62% of female victims of alco hol-related violence reported experiencing some form of injury. † Unfortunately, these victimized women have a high likelihood of sticking by their man.As a result, they may end up drinking as well to deal with the abuse that they experience. Furthermore, the article entitled Alcohol, Violence, and Aggression notes that aggressive behavior of alcohol drinkers’ result in â€Å"86 percent of homicide offenders, 37 percent of assault offenders, 60 percent of sexual offenders, up to 57 percent of men and 27 percent of women involved in marital violence, and 13 percent of child abusers. † Excessive alcohol drinkers engage in such actions because according to the Alcohol, Violence, and Aggression article, alcohol has been known toweake[n] brain mechanisms that normally restrain impulsive behaviors, including inappropriate aggression. By impairing information processing, alcohol can also lead a person to misjudge social cues, thereby overreacting to a perceived threat. Simultaneously, a narrowing of attention may lead to an inaccurate assessment of the future risks of acting on an immediate violent impulse. Besides aggressive behavior that is exhibited due to the lessening of inhibition, ease of interaction amongst a group of people also ensues.Thus, men usually drink with acquaintances or colleagues at work to develop rapport and comradeship. Hence, the Alcohol and the Workplace article indicate that â€Å"[s]tudies of male-dominated occupations have described heavy drinking cultures in which workers use drinking to build solidarity and show conformity to the group. † On the contrary, alcohol can be harmful in the workplace when an individual's job performance suffers. Limitless alcohol consumption can result in people suffering from a hangover the following day, which affects and hampers concentration, memory and motor skill.Thus, the Alcohol and the Workplace article state that hangover has a positive correlation between â€Å"the frequ ency of feeling sick at work, sleeping on the job, and having problems with job tasks or co-workers. † The same article also mentions that productivity losses are attributed to alcohol. Performance at work may be affected both by the volume and pattern of drinking. Co-workers perceive that heavy drinkers have lower performance, problems in personal relationships and lack of self-direction, though drinkers themselves do not necessarily perceive effects on their work performance.In addition, the aforementioned article also explains that There is ample evidence that people with alcohol dependence and drinking problems are on sick leave more frequently than other employees, with a significant cost to employees, employers, and social security systems†¦. Therefore, constant and excessive alcohol consumption can negatively affect work performance. Persistent pattern of alcohol drinking becomes a problem because it does not enable the employee to finish tasks, has a drastic effec t on one's output at work and will hurt the company in the long-run if an employee repeatedly accumulates absences.Nevertheless, the negative impact of alcohol on someone’s means of livelihood is still not enough to detract people from taking it. Writer Caroline Ryan of BBC News says that the reason being is alcohol triggers the internal composition of our body. Alcohol releases dopamine which â€Å"which produces feelings of satisfaction. It also increases the production of the brain's natural painkiller – endorphin – which scientists think could be the means by which the brain becomes trained to crave†¦. Scientists believe this effect is part of the development of tolerance to, and dependence on, alcohol.† Also, excessive alcohol drinking can contribute to health issues. According to Dr. Berman, alcohol can either directly or indirectly cause: cancers of the mouth, throat, liver, larynx, and esophagus; stomach ulcers and bleeding in the upper gastr ointestinal tract; pancreatitis; cirrhosis of the liver; hypertension; cardiac arrhythmias; congestive heart failure; peripheral nerve problems; increased susceptibility to infections. Nissl, author of Alcohol and Drug Problems, also indicates that â€Å"[l]ong-term heavy drinking damages the nervous system, heart, and brain.It also can lead to stomach problems, medicine interactions, sexual problems, osteoporosis†¦ † While an article entitled Alcohol Myth says that sparse drinking will still result in the â€Å"slow[ing] down [of] the heart rate, lower[ing] [of] your blood pressure, and slow[ing] [of] your breathing rate. † Also, food digestion is inhibited from fully functioning. The Alcohol and Nutrition article exhibits that alcohol interferes with the nutritional process by affecting digestion, storage, utilization, and excretion of nutrients†¦ Alcohol inhibits the breakdown of nutrients into usable molecules†¦Alcohol impairs nutrient absorption by damaging the cells lining the stomach and intestines and disabling transport of some nutrients into the blood†¦ Even if nutrients are digested and absorbed, alcohol can prevent them from being fully utilized by altering their transport, storage, and excretion†¦ alcohol can impair the mechanisms by which the body controls blood glucose levels, resulting in either increased or decreased blood glucose. Again, the said article also explains that lack of nutrients can result in deficiencies that can lead to â€Å"severe and permanent effects on brain function.Specifically, thiamine deficiencies, often seen in alcoholics, [which] can cause severe neurological problems such as impaired movement and memory loss. † It is also a fact that mental and emotionally faculties can also be affected. According to Green Facts, anxiety, fear and depression are common problems encountered by family members of an alcoholic and the alcoholic himself. For alcoholics, the Why Do People Drin k Alcohol article discusses that alcohol intake actually causes depression since alcohol is a depressant.While feelings of a depressed person is magnified two-folds when depression medicine stays in the system at the same time that alcohol is in one’s body. Despite the health risks involve with excessive alcohol consumption, some women may still engage in the act even when they are pregnant. According to Nemours Foundation, â€Å"[i]t's estimated that each year in the United States, 1 in every 750 infants is born with a pattern of physical, developmental, and functional problems referred to as fetal alcohol syndrome (FAS), while another 40,000 are born with fetal alcohol effects (FAE).† Fetal Alcohol Syndrome results in birth defects in infants that can debilitate or permanently damage one's normal capabilities and functioning. Indeed, alcohol can become toxic when there is too much of it. Infinite amount of liquor can be the cause of death for a relatively few people. This unfortunate incident is known as alcohol poisoning, also called acute alcohol intoxication. The Alcohol Myth article explains that in this specific instance, alcohol acts as a poison that attacks the body and results in death.On a lighter note, a mild form of sleep disturbance can be induced by alcohol especially among college students who usually have the notion that â€Å"alcohol is not as bad as what people claim it to be. † The Alcohol and Sleep article points out that â€Å"[t]he more one drinks, the faster the person will fall asleep, but the likelihood of sleep disturbances increases. Alcohol consumed up to 6 hours before bedtime can affect sleep patterns. † And we are all aware that lack of sleep can make a person feel easily irritated and unfocused on the tasks at hand.Also, we should not exclude the fact that financial costs can dampen one's available resources. According to Estimating the Economic Cost of Alcohol Abuse article, the health cost of alcoh ol dependence behavior which include medical, alcohol abuse and dependence treatment does not come cheap. Furthermore, hospital bills and medical inconvenience does not end there. Accidents caused by drunk driving, which endanger public safety, can accrue more damages to the physical and financial well-being of a person. Also, mental irregularities can happen when an alcoholic attempts to commit suicide.According to Women and Alcohol article, â€Å"40% of alcoholic women attempted to commit suicide, compared to 8. 8% of non-alcoholic women. [While] [y]ounger women who are alcoholics are nearly twice as likely to attempt to commit suicide (50. 5%) than older women who are alcoholics (25. 5%). † Tendencies like this transpire because a person is emotionally unstable. The main reason why alcoholics turn to alcohol for comfort is to numb their feelings or to forget their problems. They fail to realize that trying to forget about their unpleasant situation is only fleeting and doe s not solve anything in the long-run.For instance, the Why Do People Drink Alcohol article explains that drinking alcohol to deal with a break up or death in one’s family â€Å"delays the healing process because the people aren’t giving themselves a chance to heal. † This is because they are not confronting their problem and letting themselves experience emotions that naturally surface in this kind of circumstance. Hence, the behavior that they are engaging in-regularly drinking loads of alcohol-does not help them at all even though they will like to think so otherwise.Thus, immense alcohol consumption may unfortunately lead to death. According to Dr. Berman, the â€Å"third leading cause of mortality in the United States, and is responsible for approximately 100,000 preventable deaths per year,† is alcohol. Hence, premature death due to excessive alcohol consumption is within our ability to control and avoid from happening. Also, if death does not occur due to reckless driving, diseases that take over the body gradually-as was mentioned earlier- can also take away one's life.If an alcoholic somehow manages to stay out of harm's way, alcohol can contribute to risky behaviors like unprotected sexual activity, use of tobacco and illegal drugs. The article entitled Alcohol: An Addictive Drug tackles the fact that alcohol â€Å"is frequently the entry-level drug that leads to harder drugs, such as cocaine and heroin. † These acts that may seem â€Å"harmless†-especially to those actively taking part in the habit- cost the government money because they shoulder any expense that is brought up. This is because effective law enforcement has to be increased and strengthened via mandatory regular training to deal with misdemeanors.Also, according to Estimating the Economic Cost of Alcohol Abuse article, other parts of society are involved like the â€Å"criminal justice system, social welfare administration-† just to name a few- to ensure that society is not greatly troubled by the reckless behavior that alcoholics enact. Overall, limitation and prohibition of alcohol will never be successful as demonstrated by the Temperance Movement. This is because people find ways to get around the system and defy laws that go against what they want to do with their personal lives.The key to the problems that alcohol presents is not to eliminate the source of the problem, in this case alcohol itself, but to educate young people about the adverse effects that alcohol places on them and on society as a whole. Also, tough enforcement of established laws regarding alcohol should be done. In addition, assistance should be available and given to alcoholics so that violence, alcohol craving and health issues that they have are addressed in a timely manner. Finally, people should keep in mind that alcohol does not solve anything.It only creates or increases the existing problems that one faces. Additionally, people have the power to change the glamorized notions about alcohol consumption-how it is the â€Å"in† thing to do because all the â€Å"cool† kids are doing it- and its supposed positive effects which mostly deals with a smoother social interaction with other people. The media plays a crucial role in changing this persistent view. The media should stress-via their print publication, billboard ads, television and radio programs- that the negative impact of alcohol outweighs any positive impact that may be derived from it.Also, it is essential that alcoholics are aided in finding ways to control their urges and direct it to an outlet that will be more beneficial for them. It will also be important to make people aware that proper and moderate alcohol consumption is an obligation that they should perform and abide by at all times because it is for their best interest. Hence, alcohol regulations serve people by protecting their well-being. References â€Å"Alcohol and Sleep. â₠¬  (2006). Loyola Marymount University. â€Å"Alcohol and the Nutrition. † October 1993. Alcohol Alert.22. 29 January 2008. National Institute on Alcohol Abuse and Alcoholism. â€Å"Alcohol and the Workplace. † July 1999. Alcohol Alert. 44. 29 January 2008. National Institute on Alcohol Abuse and Alcoholism. â€Å"Alcohol Myths. † (2006). Loyola Marymount University. 30 January 2008. â€Å"Alcohol, Violence, and Aggression. † October 1997. Alcohol Alert. 38. 29 January 2008. National Institute on Alcohol Abuse and Alcoholism. Berman, James. January 2003. â€Å"Alcohol and drug addiction†. University of Pennsylvania Health System. 29 January 2008 â€Å"Fetal Alcohol Syndrome. † 2008. Nemours Foundation. 30 January 2008. â€Å"History of Alcohol. † (n. d). 30 January 2008 Nissl, Ian. 23 February 2007. â€Å"Alcohol and Drug Problems. † Peace Health. 29 January 2008. Ryan, Caroline. Why alcohol is addictive. 15 March 200 4. BBC News. 30 January 2008. http://news. bbc. co. uk/2/hi/health/3537387. stm â€Å"Scientific Facts on Alcohol. † (2008). Green Facts. 29 January 2008. â€Å"The History of Alcohol. † (2005). Drug-Rehabs. org 30 January 2008. Thornton, M. (1991). â€Å"Alcohol prohibition was a failure. † CATO institute. 30 January 2008. Walters, G. D. (2002).The heritability of alcohol abuse and dependence: a meta-analysis of behavior genetic research. American Journal of Drug and Alcohol Abuse, 28(3), 557- 584. â€Å"What in American's history could lead to prohibition? † (n. d). 30 January 2008. Why Do People Drink Alcohol? (n. d) 30 January 2008. Women and Alcohol. (2006). Loyola Marymount University. 30 January 2008. Alcoholism in America I. History of Alcohol A.lack of other drink alternatives B. American Revolution C. Emergence of Saloons D. Temperance Movement 1. Definition of Temperance 2. Reasons for the movement 3. Problem with Temperance II. Personal Problem with Alcohol now A. Family problem 1. ineffective parent 2. money spent on alcohol instead B. Violence 1. between partners a. statistical information b. victimized women 2. statistics of criminal offenses C. Alcohol at the workplace 1. reason to bond especially with men 2. negative effect on work performance a. productivity b. absence D. Alcohol Cravings E. health problem 1. damages parts of the body2. slows down bodily functions 3. interferes with digestion process 4. nutritional deficiencies 5. mental health problem 6. fetal alcohol syndrome 7. alcohol poisoning 8. sleep disturbances 9. health related costs F. Accidents 1. different damages accrued 2. suicide statistical evidence G. Deaths 1. statistical evidence III. Other negative effects of alcohol A. Vices associated with alcohol B. Government expenditures Note cards page â€Å"Alcohol, like nicotine and marijuana, is frequently the entry-level drug that leads to harder drugs, such as cocaine and heroin. † †Å"Alcohol: An Addictive Drug.† (2006). Covenant Health. 30 January 2008. The nutrients from digested food are absorbed from the intestines into the blood and carried to the liver. The liver prepares nutrients either for immediate use or for storage and future use. Alcohol inhibits the breakdown of nutrients into usable molecules by decreasing secretion of digestive enzymes from the pancreas (2). Alcohol impairs nutrient absorption by damaging the cells lining the stomach and intestines and disabling transport of some nutrients into the blood (3).In addition, nutritional deficiencies themselves may lead to further absorption problems. For example, folate deficiency alters the cells lining the small intestine, which in turn impairs absorption of water and nutrients including glucose, sodium, and additional folate (3). Even if nutrients are digested and absorbed, alcohol can prevent them from being fully utilized by altering their transport, storage, and excretion†¦ Even wh en food intake is adequate, alcohol can impair the mechanisms by which the body controls blood glucose levels, resulting in either increased or decreased blood glucose (glucose is the body's principal sugar)†¦Ã¢â‚¬Å"Alcohol and the Nutrition. † October 1993. Alcohol Alert. 22. 29 January 2008. National Institute on Alcohol Abuse and Alcoholism. â€Å"Disturbances of sleep lead to fatigue and sleepiness during the day. The more one drinks, the faster the person will fall asleep, but the likelihood of sleep disturbances increases. Alcohol consumed up to 6 hours before bedtime can affect sleep patterns, increasingthe longevity of disturbances alcohol causes in the body’s sleep cycles. † â€Å"Alcohol and Sleep. † (2006). Loyola Marymount University. â€Å"Studies of male-dominated occupations have described heavy drinking cultures in which workers use drinking to build solidarity and show conformity to the group (4,5). Some male-dominated occupations therefore tend to have high rates of heavy drinking and alcohol-related problems. † â€Å"Alcohol and the Workplace. † July 1999. Alcohol Alert. 44. 29 January 2008. National Institute on Alcohol Abuse and Alcoholism. Myth: â€Å"The worst thing that can happen is that I’ll pass out and have a hangover tomorrow. â€Å"The fact is that death can and does occur from drinking too much alcohol. This is known as alcohol poisoning or acute alcohol intoxication and occurs when the level of alcohol in the body acts as a poison, causing death from the drug overdose. Another way that alcohol can cause death is due to alcohol related accidents, such as drunk driving, falls, and suicide. Myth: â€Å"People pass out from drinking all the time. It’s nothing to worry about. â€Å"†¦ Alcohol is a central nervous system depressant that works to slow down the heart rate, lower your blood pressure, and slow your breathing rate.Once your brain has been depressed eno ugh by the alcohol, you pass out. â€Å"Alcohol Myths. † (2006). Loyola Marymount University. 30 January 2008. â€Å"Based on published studies, Roizen (3) summarized the percentages of violent offenders who were drinking at the time of the offense as follows: up to 86 percent of homicide offenders, 37 percent of assault offenders, 60 percent of sexual offenders, up to 57 percent of men and 27 percent of women involved in marital violence, and 13 percent of child abusers†¦. Direct Effects of Alcohol.Alcohol may encourage aggression or violence by disrupting normal brain function. According to the disinhibition hypothesis, for example, alcohol weakens brain mechanisms that normally restrain impulsive behaviors, including inappropriate aggression (5). By impairing information processing, alcohol can also lead a person to misjudge social cues, thereby overreacting to a perceived threat (6). Simultaneously, a narrowing of attention may lead to an inaccurate assessment of t he future risks of acting on an immediate violent impulse (7)† â€Å"Alcohol, Violence, and Aggression. † October 1997. Alcohol Alert. 38. 29 January 2008.National Institute on Alcohol Abuse and Alcoholism. The Dangers of Alcohol Alcohol is the third leading cause of mortality in the United States, and is responsible for approximately 100,000 preventable deaths per year†¦. alcohol abuse can cause long term problems in virtually every organ system in your body including: 4. Cancers of the mouth, throat, larynx, and esophagus 5. Stomach ulcers and bleeding in the upper gastrointestinal tract 6. Pancreatitis, cirrhosis of the liver, and liver cancer 7. Hypertension, cardiac arrhythmias, and congestive heart failure8. Sexual dysfunction, including loss of libido and impotence 9. Peripheral nerve problems 10. Increased susceptibility to infections Berman, James. January 2003. â€Å"Alcohol and drug addiction†. University of Pennsylvania Health System. 29 January 2008 Alcohol (wine, beer, or liquor) is the leading known preventable cause of mental and physical birth defects in the United States. When a woman drinks alcohol during pregnancy, she risks giving birth to a child who will pay the price — in mental and physical deficiencies — for his or her entire life.Yet many pregnant women do drink alcohol. It's estimated that each year in the United States, 1 in every 750 infants is born with a pattern of physical, developmental, and functional problems referred to as fetal alcohol syndrome (FAS), while another 40,000 are born with fetal alcohol effects (FAE). â€Å"Fetal Alcohol Syndrome. † 2008. Nemours Foundation. 30 January 2008. In the 1890 the Temperance movement swept across the United States preaching that alcohol was immoral and destroyed family life. This movement radically altered peoples views†¦In 1920 America saw prohibition in an effort to prevent the social problems caused by alcohol abuse. This cause d a surge in gangster brawls as gangs fought to take control of distributing alcohol on the black market†¦. However, this trend slowly started to alter as physicians started to link alcohol to a number of diseases and social problems. By the early 1900 Dr Rush documented the addictive behaviour of alcohol and in 1935 Alcoholic Anonymous was set up. â€Å"History of Alcohol. † (n. d). 30 January 2008 Alcohol-related motor vehicle accidents are the leading cause of death in teenagers. People who drink alcohol are more likely to engage in high-risk sexual behavior, have poor grades or job performance, use tobacco products, and experiment with illegal drugs. Long-term heavy drinking damages the liver, nervous system, heart, and brain. It also can lead to high blood pressure, stomach problems, medicine interactions, sexual problems, osteoporosis, and cancer. Nissl, Ian. 23 February 2007. â€Å"Alcohol and Drug Problems. † Peace Health. 29 January 2008. â€Å"Alcohol triggers the release of dopamine – a chemical which produces feelings of satisfaction. It also increases the production of the brain's natural painkiller – endorphin – which scientists think could be the means by which the brain becomes trained to crave. † Ryan, Caroline. Why alcohol is addictive. 15 March 2004. BBC News. 30 January 2008. http://news. bbc. co. uk/2/hi/health/3537387. stm 73% reported feelings of anxiety, fear, and depression†¦ Heavy drinking at the workplace may potentially lower productivity.Sickness absences associated with harmful use of alcohol and alcohol dependence entails a substantial cost to employees and social security systems. There is ample evidence that people with alcohol dependence and problem drinkers have higher rates of sickness absence than other employees†¦. lower performance, lack of self-direction and problems in personal relations were found to be related to heavy drinking, particularly when collateral re ports were used. †¦ alcoholism has had adverse impacts on productivity in the workplace and increased absenteeism†¦.It is estimated that drinking and alcoholism have reduced labor productivity by some 10%†¦ Drinking can impair performance as a parent, as spouse or partner, and as a contributor to household functioning†¦. In many societies, drinking may be carried out primarily outside the family and the home†¦. Drinking also costs money and can impact upon resources particularly of a poor family, leaving other family members destitute. Scientific Facts on Alcohol. † (2008). Green Facts. 29 January 2008. Americans during the time of the American Revolution, for the most part showed little concern over drunkenness, and spiritous liquors had become the greatest factors in colonial commerce†¦. To expand the sale of beer, brewers expanded the number of saloons. Saloons proliferated. It was not uncommon to find one saloon for every 150 or 200 Americans, including those who did not drink. Hard-pressed to earn profits, saloonkeepers sometimes introduced vices such as gambling and prostitution into their establishments in an attempt to earn profits. Many Americans considered saloons offensive, noxious institutions†¦Prohibition in the United States was a measure designed to reduce drinking by eliminating the businesses that manufactured, distributed, and sold alcoholic beverages. The Eighteenth Amendment to the U. S. Constitution took away license to do business from the brewers, distillers, vintners, and the wholesale and retail sellers of alcoholic beverages†¦. The bootleggers (named after the practice adopted by travelers in the Midwest in the 1880's, who concealed liquor in their boots when trading with Indians) began by importing booze over the Mexican and Canadian borders, and from the Caribbean†¦When Prohibition was repealed in 1933, an elaborate syndicate of organized crime, built on the multi-million dollar boo tlegging industry, had survived. The American Mafia branched out into narcotics, gambling, prostitution, loan sharking and extortion, concerns they still control today. â€Å"The History of Alcohol. † (2005). Drug-Rehabs. org 30 January 2008. â€Å"National prohibition of alcohol (1920-33)–the â€Å"noble experiment†Ã¢â‚¬â€œwas undertaken to reduce crime and corruption, solve social problems, reduce the tax burden created by prisons and poorhouses, and improve health and hygiene in America.The results of that experiment clearly indicate that it was a miserable failure on all counts. † Thornton, M. (1991). â€Å"Alcohol prohibition was a failure. † CATO institute. 30 January 2008. â€Å"In the 1600 and 1700's, there were very few things available to drink. One did not want to take a lot of chances with the water and the unpasteurized milk of the time. Also, coffee and tea were expensive items, which left people of the time with one alternative, a lcohol†¦.By the 1820's the average American was drinking 7 gallons of pure alcohol†¦. Criminal groups organize around the steady source of income provided by laws against victimless crimes such as consuming alcohol or drugs, gambling and prostitution. In the process of providing goods and services those criminal organizations resort to real crimes in defense of sales terrorities, brand names, and labor contracts† â€Å"What in American's history could lead to prohibition? † (n. d). 30 January 2008. â€Å"It is impossible to treat depression whilst someone is drinking as the alcohol has the opposite action to the drugs prescribed for depression and of course alcohol itself being a depressant may actually be causing the symptoms rather than treating them†¦. If people find they are frequently using alcohol to cope with stressful and worrying situations in their lives then they may need to consider finding another way of dealing with stress or to face the p roblem and deal with it rather than avoiding it.Alcohol cannot solve these problems and will always cause more problems of its own in terms of health and money etc. In situations such as bereavement or relationship break ups, it actually delays the healing process because the people aren’t giving themselves a chance to heal†¦. † Why Do People Drink Alcohol? (n. d) 30 January 2008. Suicide 3. One study showed that 40% of alcoholic women attempted to commit suicide, compared to 8. 8% of non-alcoholic women. 10 4.Younger women who are alcoholics are nearly twice as likely to attempt to commit suicide (50. 5%) than older women who are alcoholics (25. 5%). 10 Victimization13 2. 57% of female victims of intimate violence (i. e. , current or former spouses, boyfriends, etc. ) reported that the offender had been drinking at the time of the offense. 3. 62% of female victims of alcohol-related violence reported experiencing some form of injury. Women and Alcohol. (2006). Lo yola Marymount University. 30 January 2008.

The Bear Minimum

Per your request, our group conducted research to determine whether costs or potential costs of the provisions of Big Bear Power’s lease of Goliath Co’s combustion turbine should be included in its minimum lease payments. We have provided a summary of the facts, our conclusion, the basis for our conclusion, and an analysis of possible alternatives to our conclusion as requested. Summary of the Facts Big Bear Power (the Company), a public utility company, is leasing a combustion turbine from Goliath Co. for a 10-year, non-cancelable term. The lease agreement was signed on December 15, 2004, and the company’s right to use the turbine starts on January 1, 2005. Big Bear Power has been financially strong for a number of years, has positive cash flow, and is in accordance with all of its debt covenants. The lease agreement contains three provisions, each of which has associated costs that may potentially need to be included in the calculation of minimum lease payments. The issue at hand is determining whether the costs in these provisions should, in fact, be included in minimum lease payments Conclusion Provision 1 Big Bear Power should not include the $500,000 negotiation fee in its minimum lease payments because, by definition, it is not an obligatory payment to be made toward the asset. On the other hand, the Company should include the $1 million legal fee in minimum lease payments since it is considered an initial direct cost made in connection with the leased property. Provision 2 The lease agreement includes a provision requiring a penalty payment if Big Bear’s bank declares it in default under its primary credit arrangement. This potential cost should be included in calculating minimum lease payments since a lack of predetermined criteria exists to determine default. Provision 3 The lease agreement stipulates Big Bear’s annual lease amount to be increased by the percentage increase in the Consumer Price Index (CPI). Because the lease payments depend on the index, it must be included in the calculation of the minimum lease payment at the inception of the lease agreement. Basis for Conclusion Provision 1 In the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 840-10-25-5, minimum lease payments are â€Å"the payments that the lessee is obligated to make or can be required to make in connection with the leased property,† excluding contingent rentals, any guarantees of the lessor’s debt, and executory costs. Although negotiating fees incurred by Big Bear Power are not executory costs, the fees toward its external legal counsel are considered non-obligatory in nature and should be expensed. In contrast, legal fees paid by Big Bear Power on behalf of Goliath Co. an be categorized as initial direct costs under Statement of Financial Accounting Standards (SFAS) 91. Being defined as such, they can be included in the general description of payments they are obligated to make in connection with the lease agreement. Provision 2 Big Bear Power is subject to default if there is a â€Å"material adverse change† in its financial cond ition. FASB ASC 840-10-25-14 provides guidance for default covenants relating to nonperformance and provides four conditions as follows: a. The default covenant provision is customary in leasing arrangements. b. The occurrence of the event of default is objectively determinable. c. Predefined criteria, related solely to the lessee and its operations, has been established for the determination of the event of default. d. It is reasonable to assume, based on the facts and circumstances that exist at lease inception, that the event of default will not occur. In applying this condition, it is expected that entities would consider recent trends in the lessee's operations. The Codification states that if the lease agreement fails to meet all of these conditions, Big Bear Power must include the penalty in its minimum lease payments. As already stated in the information provided, condition (a) is met. Upon further analysis, condition (b) and (d) are also met—Big Bear’s bank is an objective third-party that will determine an occurrence of default, and Big Bear Power is financially strong with remote likelihood of default. While the facts imply that â€Å"material adverse change† is a predefined criterion to determine default, it is our contention that the lack of definition in the documents is sufficient evidence to not fulfill the third condition. Furthermore, the absence of a definition implies a lack of objectivity within the criteria; the phrase â€Å"material adverse change† provides no verifiable benchmark to which Big Bear Power can be examined through its operations, as mandated by the condition. Consequently, Big Bear Power should add the maximum amount of the penalty to the minimum lease payments. Provision 3 According to FASB ASC 840-10-25-4, the portion of lease payments that depends on an index, such as the Consumer Price Index(CPI), should be included in calculating minimum lease payments at lease inception. Big Bear’s lease payments are contingent on increases in the CPI, therefore it must follow this rule. The lease agreement states that Big Bear will pay $1 million per year, and the lease amount will change at each year-end by the increase in the index rate. Only the most recent CPI increase at inception will be included in minimum lease payments. Future increases in the index will not be included as they are considered a contingent rental. Analysis of Alternatives Provision 1 Alternative A debate of Provision 1 suggests that Big Bear Power should not include the $1 million in legal fees toward minimum lease payments. Initial direct costs may be considered transactions separate from the lease itself with benefits being realized at the time of exchange (International Accounting Standards Board [IASB], 2009). Their recognition as assets would be erroneous under this premise, and instead would require an immediate expense to the income statement. Still, it remains our team’s recommendation that the $1 million legal fees be treated as described, in accordance with the FASB’s logic behind fees closely-tied to a lease agreement. Provision 2 Alternative It can be contended that the required penalty payment under a declaration of default should not be included in the minimum lease payments. As stated, FASB ASC 840-10-25-14 provides four conditions, which, if all fulfilled, would not include the penalty in minimum lease payments. Based on those facts provided, and regardless of the definition behind â€Å"material adverse change†, it is arguable that a sufficient criterion exists to determine default. Furthermore, the criterion is established by a third-party with no relation to Goliath Company. This would fulfill condition (c). Provision 3 Alternative Alternative treatment of this provision would adjust minimum lease payments annually after 2005 for the annual increase in the Consumer Price Index. For example, if the lease payment in 2005 is $1 million and the most recent CPI increases by 4%, the lease payment would increase to $1,040,000 in 2006, and $1,081,600 in 2007. The reasoning for this approach is to more accurately measure the lease agreement for financial reporting. However, this method is not in agreement with FASB ASC 840-10-25-4, which states a lease dependent on an index should only include the index existing at lease inception when calculating minimum lease payments. References Financial Accounting Standards Board. (n. d. ). Accounting standards codification. Norwalk, CT: Financial Accounting Standards Board. Retrieved February 8, 2010. International Accounting Standards Board. (2009). IASB staff paper: leases – initial direct costs. London, United Kingdom: International Accounting Standards Board. Retrieved February 8, 2010. The Bear Minimum Per your request, our group conducted research to determine whether costs or potential costs of the provisions of Big Bear Power’s lease of Goliath Co’s combustion turbine should be included in its minimum lease payments. We have provided a summary of the facts, our conclusion, the basis for our conclusion, and an analysis of possible alternatives to our conclusion as requested. Summary of the Facts Big Bear Power (the Company), a public utility company, is leasing a combustion turbine from Goliath Co. for a 10-year, non-cancelable term. The lease agreement was signed on December 15, 2004, and the company’s right to use the turbine starts on January 1, 2005. Big Bear Power has been financially strong for a number of years, has positive cash flow, and is in accordance with all of its debt covenants. The lease agreement contains three provisions, each of which has associated costs that may potentially need to be included in the calculation of minimum lease payments. The issue at hand is determining whether the costs in these provisions should, in fact, be included in minimum lease payments Conclusion Provision 1 Big Bear Power should not include the $500,000 negotiation fee in its minimum lease payments because, by definition, it is not an obligatory payment to be made toward the asset. On the other hand, the Company should include the $1 million legal fee in minimum lease payments since it is considered an initial direct cost made in connection with the leased property. Provision 2 The lease agreement includes a provision requiring a penalty payment if Big Bear’s bank declares it in default under its primary credit arrangement. This potential cost should be included in calculating minimum lease payments since a lack of predetermined criteria exists to determine default. Provision 3 The lease agreement stipulates Big Bear’s annual lease amount to be increased by the percentage increase in the Consumer Price Index (CPI). Because the lease payments depend on the index, it must be included in the calculation of the minimum lease payment at the inception of the lease agreement. Basis for Conclusion Provision 1 In the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 840-10-25-5, minimum lease payments are â€Å"the payments that the lessee is obligated to make or can be required to make in connection with the leased property,† excluding contingent rentals, any guarantees of the lessor’s debt, and executory costs. Although negotiating fees incurred by Big Bear Power are not executory costs, the fees toward its external legal counsel are considered non-obligatory in nature and should be expensed. In contrast, legal fees paid by Big Bear Power on behalf of Goliath Co. an be categorized as initial direct costs under Statement of Financial Accounting Standards (SFAS) 91. Being defined as such, they can be included in the general description of payments they are obligated to make in connection with the lease agreement. Provision 2 Big Bear Power is subject to default if there is a â€Å"material adverse change† in its financial cond ition. FASB ASC 840-10-25-14 provides guidance for default covenants relating to nonperformance and provides four conditions as follows: a. The default covenant provision is customary in leasing arrangements. b. The occurrence of the event of default is objectively determinable. c. Predefined criteria, related solely to the lessee and its operations, has been established for the determination of the event of default. d. It is reasonable to assume, based on the facts and circumstances that exist at lease inception, that the event of default will not occur. In applying this condition, it is expected that entities would consider recent trends in the lessee's operations. The Codification states that if the lease agreement fails to meet all of these conditions, Big Bear Power must include the penalty in its minimum lease payments. As already stated in the information provided, condition (a) is met. Upon further analysis, condition (b) and (d) are also met—Big Bear’s bank is an objective third-party that will determine an occurrence of default, and Big Bear Power is financially strong with remote likelihood of default. While the facts imply that â€Å"material adverse change† is a predefined criterion to determine default, it is our contention that the lack of definition in the documents is sufficient evidence to not fulfill the third condition. Furthermore, the absence of a definition implies a lack of objectivity within the criteria; the phrase â€Å"material adverse change† provides no verifiable benchmark to which Big Bear Power can be examined through its operations, as mandated by the condition. Consequently, Big Bear Power should add the maximum amount of the penalty to the minimum lease payments. Provision 3 According to FASB ASC 840-10-25-4, the portion of lease payments that depends on an index, such as the Consumer Price Index(CPI), should be included in calculating minimum lease payments at lease inception. Big Bear’s lease payments are contingent on increases in the CPI, therefore it must follow this rule. The lease agreement states that Big Bear will pay $1 million per year, and the lease amount will change at each year-end by the increase in the index rate. Only the most recent CPI increase at inception will be included in minimum lease payments. Future increases in the index will not be included as they are considered a contingent rental. Analysis of Alternatives Provision 1 Alternative A debate of Provision 1 suggests that Big Bear Power should not include the $1 million in legal fees toward minimum lease payments. Initial direct costs may be considered transactions separate from the lease itself with benefits being realized at the time of exchange (International Accounting Standards Board [IASB], 2009). Their recognition as assets would be erroneous under this premise, and instead would require an immediate expense to the income statement. Still, it remains our team’s recommendation that the $1 million legal fees be treated as described, in accordance with the FASB’s logic behind fees closely-tied to a lease agreement. Provision 2 Alternative It can be contended that the required penalty payment under a declaration of default should not be included in the minimum lease payments. As stated, FASB ASC 840-10-25-14 provides four conditions, which, if all fulfilled, would not include the penalty in minimum lease payments. Based on those facts provided, and regardless of the definition behind â€Å"material adverse change†, it is arguable that a sufficient criterion exists to determine default. Furthermore, the criterion is established by a third-party with no relation to Goliath Company. This would fulfill condition (c). Provision 3 Alternative Alternative treatment of this provision would adjust minimum lease payments annually after 2005 for the annual increase in the Consumer Price Index. For example, if the lease payment in 2005 is $1 million and the most recent CPI increases by 4%, the lease payment would increase to $1,040,000 in 2006, and $1,081,600 in 2007. The reasoning for this approach is to more accurately measure the lease agreement for financial reporting. However, this method is not in agreement with FASB ASC 840-10-25-4, which states a lease dependent on an index should only include the index existing at lease inception when calculating minimum lease payments. References Financial Accounting Standards Board. (n. d. ). Accounting standards codification. Norwalk, CT: Financial Accounting Standards Board. Retrieved February 8, 2010. International Accounting Standards Board. (2009). IASB staff paper: leases – initial direct costs. London, United Kingdom: International Accounting Standards Board. Retrieved February 8, 2010.