One set of Global Accounting Standards Good idea

One set of Global Accounting Standards Good idea The US GAAP has influenced accounting standards in many countries. A decade ago, some still expected that it would eventually become globally accepted but in recent times, this is not likely because there has been a distinctive global shift towards the use of International Financial Reporting Standards (IFRS) in the past few years. Many nations such as Japan, China and India have active programs designed to achieve convergence with IFRS for financial reporting purposes and more than 100 nations either require or permit the use of IFRS for financial reporting and is likely that it will soon become globally accepted (James, 2009). There has been a broad movement in the US towards the acceptance of IFRs, supported by the Financial Accounting Standard Board (FASB). The Security Exchange Commission (SEC) is also considering allowing US companies choose between US GAAP and IFRS when reporting to the SEC and may require that all US public companies utilize IFRS by the year 2016 and while no final decisions have been made, it is quite certain that the US will be moving away from the traditional GAAP and towards a convergence with IFRS(James, 2009). For several decades, global organisations such as the European Union (EU), International Organisation of Securities Commission (IOSCO) and the International Accounting Standards Commission (IASC) have supported international efforts to harmonize financial accounting standards and reporting(James, 2009). To some extent, the EU gave global convergence a kick-start when they made it compulsory for EU companies listed on an EU exchange prepare their consolidated accounts after Jan 2005, under IFRS (Gill and Rosen, 2007). In 2001, the IASC reorganized and the IASB was created. Harmonization efforts thereby shifted to globalization and in 2002, the FASB and IASB signed what is commonly referred to as the Norwalk Agreement, in which the two standard setting organisations agreed to work together to develop a high quality single set of accounting standard that would be used internationally for domestic and cross border financial reporting. It was agreed that to achieve this goal, they would e liminate existing differences between US GAAP and IFRS and coordinate their efforts on future standard setting projects. As a result of this, they are now compatible in many areas even though some significant differences still exist such as LIFO inventory cost valuation which is widely used in the US but is specifically prohibited under IFRS. Others like presentation, pre-operating and pre-opening costs, borrowing costs and fair value (Gill and Rosen, 2007) exist and have to be reconciled if a global set of standards are to emerge (FASB, 2002). POTENTIAL ADVANTAGES AND DISADVANTAGES ARISNG FROM ONE SET OF GLOBAL ACCOUNTING STANDARDS Having a single set of global accounting standards has its benefits. Firstly, a single set of high quality globally accepted financial accounting standard tends to serve the financial users better and would likely lead to the greatest comparability between companies (James, 2009). The SEC identifies comparability of financial information to investors as a key benefit. Firms choose to adopt IFRS in order to increase opportunities such as increasing the number of global customers and suppliers. US companies want to investigate the financial strength of these customers when establishing long term relationships and these can be facilitated through the use of one reporting standard Secondly, academic research suggests that investors prefer to invest in companies that use familiar standards. Firms that engage in international activities would benefit from convergence and are more likely to voluntarily adopt IFRS if they have more international interactions (Bradshaw et al., 2010). Furthermore, voluntary adoption of IAS reduces the tendency for investors to over invest in domestic stock and under invest in foreign stocks. This could suggest that foreign investment decisions are related to conformity of accounting methods with domestic accounting standards. US Companies will therefore benefit from convergence of US GAAP and IFRS given that IFRS has over 100 countries adopting to it , thereby increasing foreign investment (Bradshaw et al., 2010). One set of global accounting standards would lead firms to exhibit less earnings management, more timely, less recognition and more value relevant information. There would be improvement in accounting quality and also increased liquidity in markets because IFRS is considered a higher quality set of standards as evidenced by lower information asymmetry and greater liquidity (Bradshaw et al., 2010). Lastly, it allows US issuers greater opportunity to compete in global capital markets. Replacing the competing and often contradictory standards would improve investor confidence, allow investors draw better conclusions and simplify the process and cut costs for issuers (Gill and Rosen, 2007). However, having only one set of global accounting standards has its demerits. Adopting IFRS when material differences exist at both conceptual and magnitude level could pose great costs and can be detrimental to investors(Bradshaw et al., 2010). For smaller companies, challenges will arise when their clients are acquired by foreign owners wanting to file under IFRS and this will be due to the firms not being prepared for the change because they dont have the same resources as the big firms(Rahr et al., 2010). Secondly, transition is costly and time consuming especially for public accounting firms due to initial education and software modifications which will require time and money to compute when transition to IFRS takes place. Fees for advising companies by CPAs would be substantial (Rahr et al., 2010). Furthermore, it can lead to users of financial statements claiming that preparers claim that they used standards that are not reliable and that they dont have sufficient knowledge of IFRS, leading to litigation issues (Rahr et al., 2010). Lastly, US colleges and universities dont appear to be equipped to teach IFRS at a level necessary for near-term adoption of standards (Bradshaw et al., 2010). WOULD ONE SET OF GLOBAL STANDARDS BE APPROPRIATE FOR ALL COUNTRIES? Though having one set of accounting standards have their benefits, it may be naÃÆ'Â ¯ve to think that adopting one set of standards for all countries. Skills transferred from Anglo-American countries to developing countries may network because they are culturally irrelevant or dysfunctional in these developing countries (Perera 1989, Cited in Deegan 2001). Also, the IASC standards are strongly influenced by Anglo- American accounting models and thus tend to reflect the circumstances and patterns of thinking in a group of countries. They are likely to have problems of relevance in countries with different cultural environments from Anglo American countries (Craig Deegan, 2001). Lastly, efforts towards assisting countries, particularly the developing countries by providing them with a mechanism to use western style accounting systems may cause harm because UK professional bodies dont make concessions to overseas students and insist on a set of knowledge known to UK practice and are irrelevant and harmful if applied in the wrong way (Seminar note). ADVANTAGES AND DISADVANTAGES OF A PRINCIPLE BASED APPROACH AND RULES BASED APPROACH FOR REGULATION OF FINANCIAL REPORTING. IFRS are generally principle based standards while the US GAAP is more rules based. They differ on a number of points and can affect an entitys reported results(Gill and Rosen, 2007). The rules based approach has been under fire of late due largely to the Enron Corporation failure whereby Arthur Anderson was seen as designing client-originated financial instruments that met the technical requirements of GAAP while violating the intent (Benston et al., 2006). The Sarbanes-Oxley Act of 2002 (SOX) was then issued to improve financial reporting and protect investors and it requires that the SEC conduct a study on the adoption of a principles based set of accounting standards (James, 2009). Principle based approach encourage the use of professional judgement with a focus on what is right and not what is in the rules and thus discourages financial engineering. They have a better ability to cope with the speed of change of environment and they are also less voluminous and easier to understand as they provide latitude to financial statement preparers and are easier to conform with international standards(Moneywatch.com, 2002). However, the flexibility of principle-based approach leads to professional judgement calls when financial statements and audits are prepared and this could lead to financial restatements and increased litigation if the users disagree with the CPAs judgment. They can also be a significant loss of comparability among reporting entities because preparers and auditors are required to exercise judgement in accounting for transactions (Benston et al., 2006). The Rules based Approach are developed to meet demands of major constituents like management and auditors who want a clear answer to every perceivable accounting issue and this protects accountants from criticisms and lawsuits (Benston et al., 2006). There is also less need for explanation in financial statements and less room for interpretation which results in less complex and more transparent financial statements and it reduces problems in countries such as the US characterized by a litigious environment and dominated by a very legalistic framework as the rules are stated clearly (Benston et al., 2006). However, they are too voluminous as it comprises of over 2000 separate pronouncements which are several hundred pages long and issued in various forms and formats by numerous bodies (Gill and Rosen, 2007). Secondly, because of its detailed regulations, application of rules-based approach has led to a lack of transparency regarding matters like revenue recognition derivatives, off-balance sheet finance and the likes (Elliot and Elliot, 2006). Lastly, rules can become useless or dysfunctional when the economic environment changes or if managers create innovative transactions (Benston et al., 2006). CONCLUSION Convergence of IFRS and the US GAAP is in the best interest of US companies in the long run if it provides greater comparability and yields equal or higher quality standards. They both represent a high quality set of accounting standards in terms of mitigating information asymmetry and providing information important for valuation. However, its unclear whether IFRS provides equivalent financial reporting quality relative to US GAAP(Bradshaw et al., 2010).

Play and Spoken Language Development Essay -- Child Development

The Plowden report (1967) published the intrinsic worth of play as the central approach of acquiring knowledge in the early years of children’s lives. The word play cannot be easily defined because it always depends on the contexts and the contexts also vary. There are different forms of play such as fantasy play, free flow play, constructive play, imaginative play, role play, socio-dramatic play, structured play, pretend play and heuristic play. These forms of play are categorised as â€Å"Play as learning†, and â€Å"Play as Practice† (Macintyre 2001:6). Moyles (2005), states that it is quite adverse that the phrase play has numerous meanings, and this makes parents to be wary of it. Meckley (2002) in his framework suggests that all different types of play involves varieties of activities and behaviours which results in diverse developmental and learning outcomes. Research suggest that the means to spoken language development in children’s brain is hearing language consistently because it is as a result of this that they would be able to speak (Brotherson,2005).There are evidences that toddlers who experience d talking with their mothers when they were infants have advanced vocabularies and a firm foundation for future communication. Snow (1997) claims that children who are deprived of language experiences at age four encounter a breach which barely expands over the school years. Claxton (1984) defined play as a method and approach which offer learning culture in which children’s fundamental learning needs can be met. He argued that these needs include the chance to communicate, question, interact with others and be part of a wider social experience in which flexibility, lenience and self –discipline are crucial. Moreover, different typ... ... principles, 2008).The EYFS has been a statutory requirement ever since 2008 for each and every ofsted registered settings. Furthermore, contributions from brain research have presented a lot of backups for the early years as a time for nurturing children’s learning holistically. Children’s communications and early experiences while they play has impact on the way the brain develops, and assist in shaping its formation(Shore,1997).This research, acknowledged the value of play as a â€Å"scaffold for development, a vehicle for increasing neural structures, and a means by which all children practice skills they will need in later life†(Isenberg&Quisenberry,2002:33). Meek (1985),proposed that it is through reading activities that children will start to learn a bit regarding metalinguistics, the language of language, and the concepts of words.

The Washington Monument Essay -- Architecture History Historical Essay

The Washington Monument The most stunning monument in our capital is the Washington Monument. At 555 feet high, it is the tallest such monument in the world. It is an obelisk by shape, yet not a true obelisk because it is not carved out of a single stone. The monument was built at intervals between 1848 and 1885. It memorializes George Washington's achievements and his devotion to principles and to his country. The Washington Monument has an interesting history. The idea of a monument celebrating George Washington was first considered by the Continental Congress in 1783. However, the next three decades brought neglect by Congress to take action. Finally, in 1833 the Washington National Monument Society was organized to forward the progress of the monument. Progress was slow for the society and by 1847 they had raised $87,000. Robert Mills, a well-known architect, was soon selected to design the monument. His design called for a decorated obelisk that was 600 feet high, rising out of a circular colonnaded building. This building was to be a 'temple' , an American pantheon, which would house statues of presidents and national heroes, including a large statue of George Washington. The design changed over the years and finally settled on a the obelisk without decoration as we know today. The building progressed well until the civil war. At this time construction was halted for almost 25 years. This left the unfinished obelisk standing 150 feet. Finally, on August 2, 1876, President Grant ordered the completion of the monument. The capstone was placed on the monument on December 6, 1884 and it was finally dedicated on February 21, 1885. Elevators were first powered by a steam hoist. The current elevator was installed in 195... ...ke the ancient Egyptians, we still raise monuments to commemorate our present day heroes. Although today these monuments are ordered and directed by the general public and not by the king or hero themselves. (This probably accounted for the difficulty in final completion of the Washington Monument) The long history or the obelisk being built, toppled, and stolen, further illustrates the ideas it contains. It stood for power and divinity. Today, the Washington Monument stands as a symbol of George Washington's contribution to our nation and our citizens still pay tribute to the great leader. Works Cited: Badawy, Alexander. A History of Egyptian Architecture. University of California Press. 1968. Tompkins, Peter. The Magic of Obelisks. Harper & Row Publishers, New York, 1981. Engelbach, L. The Problem of the Obelisks. T. Fisher Unwin Limited, London, 1923.

The Causes of School Violence :: Expository Cause Effect Essays Columbine

Violence in schools is an ever-growing problem in America. It seems every time we turn on the television we hear news of a new and even more disastrous event. The question we need to ask ourselves now is how can we prevent these tragedies. Many agree that looking at the behavior of students and trying to catch the problem before it escalates could be the solution. Schools increasingly believe that their responsibility is not only to teach academics, but also to curb violent, disruptive, and antisocial behavior. They recognize that underlying problems, such as bullying, teasing and learning disabilities, need to be addressed. Many of these problems were present in Eric Harris and Dylan Klebold, the adolescent murderers from Littleton, Colorado, but were not adequately addressed before the tragedy. Dylan and Eric had been quiet, intelligent boys and respectful to their teachers throughout middle school, but as they entered high school, things began to change. Dylan and Eric began to alienate themselves and became "loners". They would play violent games and were easily agitated. For a class project, Dylan and Eric made a video featuring gunmen in long coats shooting athletes in the school hallways. They were often made fun of by the "popular" crowd. Why were these signs left unaddressed? Research has shown that the students most likely to own guns and bring them to school have histories of antisocial behavior involving violations of school codes of conduct and criminal laws. Violence, typically, is used to express feelings, to manipulate others, or to retaliate against others. Warning signs include: * Inability to self-regulate emotions * Exposure to violence/abuse * Alienation/rebelliousness * Peer rejection * Substance abuse * Academic failure/ low goals, aspirations * Lack of effort in school Violent youth usually feel alienated. The key to curbing this behavior is learning to recognize these signs and getting professional help for those displaying them. The earlier the intervention, the more effective it will be. Some medical conditions have been connected with violent behavior in young people.

Assessment On Guidance And Counselling Education Essay

This brief essay efforts to discourse the function that school counselors, larning and disablement specializers, school psychologist and sometimes even private pattern clinicians play in the procedure of educational ability appraisal. The paper ‘s statements are entirely based on a reappraisal of the modern-day relevant literature. The essay begins with a brief reappraisal of the kineticss involved in instruction ability appraisal and so examines in inside informations, what function that these professionals play. Measuring Education Ability By education/academic ability, the paper refers to a pupil ‘s possible and accomplishment in formal acquisition ( Oosterhof, 1994 ) . The appraisal is conducted to find the degree of possible and or attainment that a pupil has upon exposure to a peculiar acquisition environment ( Oosterhof, 1994 ) . In measuring a kid, the experts involved attempt to measure the extent of basic academic accomplishments that such a kid can or has accumulated at a given phase. In most instances, what is evaluated scope from cognitive accomplishments, reading and composing abilities, comprehension, callback, arithmetic accomplishments, communicating abilities etc ( Oosterhof, 1994 ) . For the intents of this paper, instruction ability assessment shall entirely mention to the potency of a kid to achieve academic accomplishments and non the already achieved accomplishments. Appraisal is besides conceived as supplying a scope of trials that help measure the potency of such a kid to larn and retain cognition in an academic scene ( Oosterhof, 1994 ) . There are those kids who display model academic accomplishments in such appraisals, normally classified in a group of superior larning ability, while others may hold a lower than mean possible, normally classified in a group of larning disablement ( Oosterhof, 1994 ) . Available literature suggests that in the yesteryear, instruction ability appraisal has meant a measuring of a kid ‘s rational ability. Such appraisals have merely constituted of sets and separate subtests of differing academic accomplishments ( Wiggins, 1993 ) . There are times that such assessment becomes critical ( Elliott, 2000 ) . For case, the school can acknowledge a kid who is executing beyond norm and even better than those far in front his or her degree ( Elliott, 2000 ) . These ‘genius ‘ pupils can sometimes hold the ability of pupils 10 old ages older and therefore necessitate particular attending and publicity to their degree of ability ( Wiggins, 1993 ) . At other times, a pupil can bespeak below-par public presentation and the school be willing to carry on a trial to find whether the kid has a disablement in acquisition ( Wiggins, 1993 ) . Independently, pupils are besides put through such appraisals when fall ining a new school, a new class or measure uping for a peculiar entry that requires a peculiar degree of instruction ability ( Taylor, Personal writer, compiler, or editor name ( s ) ; click on any writer to run a new hunt on that name.1997 ) . In all these cases, the appraisal is conducted by a panel of multi -disciplinary professionals, all of whom have single countries of expertness which combine in supplying the assessment consequences of such a kid ( Wiggins, 1993 ) . Professional Roles in Assessing Education Ability Education ability appraisal has attracted voluminous involvements in the last two decennaries. Presently, most of the available literature has been concentrating on the experts behind the appraisal procedure, inclusive of the diverse professionals responsible of doing the appraisal ( Aas et al. , 2009 ) . The assessors ‘ judgements carry important weight and impact for the assessed persons, the instruction plans and their establishments ( Aas et al. , 2009 ) . It is hence imperative that the function that these professionals/experts play be regulated by standardised processs and protocols if the appraisal is to be used for such cardinal determinations as a kid ‘s hereafter. The fact that academic ability appraisals have become a cardinal constituent of academic plans across the Earth in about every state on Earth makes it really of import that there be a cosmopolitan standards, criterion and codification of pattern employed in such procedures. Pertinent to this position is the method employed, the ends set and the functions that each expert plays in the appraisal ( Aas et al. , 2009 ) . Most schools have employed staff school counselors, larning and disablement specializers, school psychologist and sometimes even private pattern clinicians to panel the educational ability appraisal processes whereby they employ their professional expertness and cognition to organize an independent equal appraisal of kids in that school. The professio nals can be hired on a full-time, parttime and long-run footing ( Aas et al. , 2009 ) . One of the functions that these professionals play in the appraisal processes is naming larning jobs in pupils. Using the clinical psychological science theories, the experts diagnose whenever a kid has physiological, psychological and emotional jobs that mar his or her ability to larn. Identification of such jobs helps in finding ways to assist such kids in their acquisition. Second, the clinical psychological science professionals help to fit pupils with their optimum acquisition environments. This is done through measure uping which pupils fit which environment and which do non ( Taylor, Personal writer, compiler, or editor name ( s ) ; click on any writer to run a new hunt on that name.1997 ) . A pupil may be able to get by with certain demands of a peculiar acquisition environment while being wholly unable to get by with another environment ( Elliott, 2000 ) . These professionals help to fit a pupil with his or her ideal degree of challenges, demands and outlooks, non merely to forestall disheartenment and defeat for that kid, but besides to put the kid in the environment that he or she can be at his or her best ( Taylor, Personal writer, compiler, or editor name ( s ) ; click on any writer to run a new hunt on that name.1997 ) . Chiefly, these assessment Sessionss are the footing that many instruction establishments conduct abnormal psychology, psychological rating, psychoeducational guidance, audience, etc, for the pupils or possible pupils of such establishments ( American Psychological Association, 2007 ) . These professionals are charged with a experimental decision-making authorization, whereby they evaluate a kid and do a determination about such a kid ‘s ability to larn in peculiar environments. Notably, these professionals besides help the kids by coaction with the instructors in reexamining the best ways that a kid can be helped to achieve his or her possible ( Elliott, 2000 ) . This provides a important penetration to ideal direction and kid development methods in an purpose to expeditiously come on each kid ‘s cognitive/academic abilities. The professionals are besides able to name jobs in and propose ways of amending the socialisation processes of such kid ( Aas et al. , 2009 ) . In many cases, the professionals accumulate informations that is valuable to instruction and kid development and or psychology research while besides assisting reform educational systems organisations, policies and climes in favour of pupils ( Oosterhof, 1994 ) . Importantly, the professionals are given the authorization of forestalling crises and salving kids before their jobs get worse, utilizing their expertness to nail possible jobs even before such jobs become open ( Taylor, Personal writer, compiler, or editor name ( s ) ; click on any writer to run a new hunt on that name.1997 ) . School counselors, larning and disablement specializers, school psychologist and private pattern clinicians play the parental function in educational establishments by looking into the public assistance of each kid, for intents of heightening their acquisition ( Aas et al. , 2009 ) .

Cultural Practices that Affect Health Essay

The Community Health Nurse (CHN), an individual who works outside of the hospital setting and typically with a specific community to provide basic health care systems (All Nursing Schools, 2009) can be perceived as the bridge to address the gap between western medicine and cultural traditions. In cases when cultural practices cause physical harm and health risks, the CHN can be the tool to provide information and educate individuals to inform them of the tangible health risks and often permanent damages caused by such practices. What is also important to acknowledge is that there is an imminent health risk that needs to be addressed. According to Megan Costello (2004), in an article about female circumcision, sometimes making a practice illegal does not serve as a good enough deterrent. Costello (2004) explains that what people need is more information to understand the health risks and the unwarranted, in terms of perceived health benefit, practice. In North African countries, an average of 94 percent of women are subjected to female circumcision (Brigham and Women’s Hospital, 2008). In the United States there are an estimated 228,000 girls and women at risk of female circumcision (Brigham and Women’s Hospital, 2008). The CHN through community agencies or organizations can work to create care systems that will facilitate the dissemination of information. The CHN can effect policy change that will bring health care to the disadvantage populations or minority groups, such as refugees, who may have little understanding of western health care systems. Essentially, to address the gap between large health care institution and individual members of small communities, the CHN has the task of developing a system that will inform members of these groups of the serious harm caused by their practices. Similarly, the CHN through the same system can protect the young adults often subjected to these traditional practices. In the case of female circumcision, Bien Aime of Equality Now (quoted in Costello, 2004) says, â€Å"†¦ people need education. We need people on the ground who have access to girls and young women at risk, to help them understand that not only is this procedure against the law, but also that there are harmful effects. † As more and more cultures and ethnic backgrounds are assimilated through migration activities there is a need to provide health care that is culturally competent. The CHN becomes integral in the task of providing adequate care to all individuals with equity regardless of cultural or ethnic backgrounds through a sensitive approach. In cases where the cultural practice causes permanent injuries and prolonged negative complications to health the CHN can contribute to changing these practices. References All Nursing Schools. (2009). Become a Community Health Nurse. All Nursing Schools. Retrieved March 7, 2009, from http://www. allnursingschools. com/faqs/community-health-nurse. php Brigham and Women’s Hospital. (2008). African Women’s Health Center. Brigham and Women’s Hospital. Retrieved March 7, 2009 from http://www. brighamandwomens. org/africanwomenscenter/FGCprevalence. aspx and http://www. brighamandwomens. org/africanwomenscenter/education. aspx? subID=submenu4 Costello, A. (2004, February 19). Two in U. S. Accused of Genital Mutilation. Women’s E News. Retrieved March 7, 2009 from http://www. womensenews. org/article. cfm/dyn/aid/1718

The Neighbourhood Principle

Has The Neighbourhood Principle failed? â€Å"My neighbour asked me if he could use my lawnmower and I told him of course he could, so long as he didn’t take it out of my garden. †1 This is the concept which most people tend to associate the word ‘neighbour’ with. However, in the court room, the word makes a decisive shift away from this traditional meaning and endeavours to establish to whom a common law duty of care is owed. The law has expanded considerably by the onset of the concept of foreseeable plaintiffs which is almost 80 years in existence in the UK.It is evasive in determining â€Å"whether proximity should now be regarded as a discrete analytical concept around which arguments may be constructed, or merely as a slippery expression reflective of the fairness, justice and reasonableness of imposing a duty of care upon the defendant in the light of the nature of his relationship with the claimant. † 2 This essay sets out to establish whethe r the neighbour principle was successful or if it has fallen short and where, it will present court decisions, statutes and constitutional provisions pertinent to this area of law.In articulating what was meant by â€Å"the neighbour principle†, Lord Atkin famously stated the following proposition: â€Å"The rule that you must love your neighbour becomes in law you must not injure your neighbour; and lawyer’s question, ‘who is my neighbour? ’ receives a restricted reply. You must take reasonable care to avoid acts or omissions 1 2 Eric Morecombe (English comedian, 1926-84) Hartstone, J. , ‘Confusion, contradiction and chaos within the House of Lords post Caparo v. Dickman’, (2008) 16 Tort L Rev 8 which you can reasonably foresee would be liable to injure your neighbour?The answer seems to be – persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question. †3 His definition was to become the foundation stone of later cases involving negligence and was, in due course, accepted as â€Å"the first definitive test of when a duty of care was owed. †4 Atkin’s statement has given rise to much discussion. At first, some displayed uneasiness at the very wide and flexible terms in which it was propounded 56.It is important to remark that this neighbour principle formed part of the ratio decidendi of Atkin’s judgment but that it cannot be said that it is the ratio decidendi of his decision. â€Å"For although both Lord Thankerton and Lord Macmillan contemplated the addition of new duties to the law of negligence, neither of them attempted to formulate the principle or principles upon which this might be done. Nor is the generalising approach of the neighbour principle appropriate to the criminal law, where precision and certainty are all-importan t. †7 As a consequence of the Donaghue v.Stevenson [1932] case in the UK, the people were given a potential remedy to take against the providers of consumer products even where no privity contract had been in existence between the 3 4 Ibid at 580 Connolly, U. , Tort Law, (Second Audition, Thomson Reuters (Professional) Ireland Limited, Dublin, 2009) at 16 5 Smith v. Howden’s Ltd [1953] N. I. 137 per Lord MacDermott C. J. 6 London Graving Dock Co. Ltd. v. Horton [1951] A. C. 736 7 Heuston, R. F. V. , ‘Salmond on the Law of Torts’, 17th edition, (Sweet & Maxwell, London, 1977) at 198 complainant and the individual or company tortfeasors.If the proviso for ascertaining that a duty of care was met, then such individuals could bring negligence claims in any situation. The dictum was accepted into Irish law in Kirby v. Burke [1944]. 8 The decision in this case â€Å"stands on the boundaries of actionable negligence,†9 and does not contend nor purport to gi ve guidance on the obligations arising from already distinguished duties, or in fact, recognisable relationships – e. g. that of occupier and visitor. 10 Sometimes the particular duty can subsist contemporaneously with the Atkinian duty,11 but sometimes it displaces it. 2 Duties may be divided into those owed to someone else i. e. â€Å"if it was imposed for the benefit of that someone else;†13 and duties owed to no one in particular i. e. if it was not imposed for the benefit of a particular individual but was imposed for the benefit of the community as a whole or for the benefit of some section of the community. †14 In an ever conscious society, there was much need for the modernisation of the law with regard to the wider duties and especially the neighbourhood principle. The Anns v.Merton15 case brought about the ‘two-stage test’ in order to ascertain 8 9 Kirby v. Burke [1944] I. R. 207 Smith v. Howdens Ltd. [1953] N. I. 131, 137, per Lord MacDerm ott C. J. 10 Smith v. Scott [1973] Ch. 314 11 Commissioners for Railways v. McDermott [1967] A. C. 1054 12 Commissioners for Railways v. Quinlan [1964] A. C. 1054 13 Bagshaw, R. and McBride, N. , ‘Tort Law’, (Pearson Education Limited, Essex, 2001) at 3 14 Ibid at 3 15 Anns. v. Merton London Borough Council [1978] A. C. 728 the existence of a duty of care in negligence.Lord Wilberforce initiated the requirement of: I. II. â€Å"A sufficient relationship of proximity based upon foreseeability†16 And secondly, the deliverance of reasons as to why a duty of care should not exist. In 1990, concerns arose with regard to the duty of care. 17 â€Å"Lord Bridge and Oliver in Caparo sought to remove any temptation on the part of the practitioners to view proximity as a discrete legal concept capable of precise application to the resolution of legal disputes. Instead, encouragement was given to view proximity in descriptive terms rather than as a definitive concept. 18 Th is time a three-stage test was introduced to establish a duty of care I. II. III. Foreseeability of damage was required, A relationship characterised by neighbourhood19 And that it would be fair, just and reasonable to impose a duty which would benefit the other party. â€Å"The Caparo tripartite approach made no reference to the concept of policy. Instead, Lord Bridge spoke only in terms of a duty of care being imposed where the 16 17 18 Ibid at 741 Caparo Industries Plc v. Dickman [1990] 2 A. C. 605 Op cit 2 as per judgment of Lord Atkin ‘Caparo v.Dickman’ (2008) 16 Tort L Rev ‘Caparo v. Dickman’ (2008) 16 Tort L Rev 8Lawbook Co. at 13 8Lawbook Co. at 13 19 court considered that it would be fair, just and reasonable to do so. †20 It is also interesting to note that a two-part test is now in place in certain jurisdictions, e. g. New Zealand, for novel fact circumstances where the finding of a duty now has to be balanced against applicable policy mat ters. 21 The two-step test established in Donaghue22 and later developed in Anns23 was that accepted by the Irish courts until 2002 until the decision of Glencar Exploration Plc v.Mayo County Council [2002]. 24 This case marked the adaptation of a two-step test which gave precedence to the â€Å"incrementalist approach†25 that was being applied in the English courts at the time. Implications of the decision in this case made by the Supreme Court became blatant in the case of Fletcher v. Commissioners of Public Works. 26 â€Å"A plaintiff who suffered reasonably foreseeable psychiatric injury, which had resulted from the defendant’s negligence towards him as his employer, was denied the damages awarded to him by the Supreme Court on ‘policy’ grounds. 27 This new approach is much more sympathetic. Since 2005, proximity has once again come to the fore with regards to decisions made by the House, some of their Lordships have adopted it as a â€Å"central ana lytical tool for disposing of appeals. †28 Thus, the notion that this principle of 20 21 22 23 24 25 26 27 28 Ibid at 13 Scott Group Ltd. v. McFarlane [1978] 1 N. Z. L. R. 553 Op cit. 4 Op Cit 19 Glencar Exploration Plc v. Mayo County Council [2002] 1 I. R. 84 Class notes on Negligence authored by Connolly, U. , distributed by Hackett. C. Fletcher v.Commissioners of Public Works in Ireland [2003] 2 I. R. 465 Byrne & Binchy, Annual Review of Tort Law, (2003) at 526 Op cit 26 at 13 proximity could â€Å"have been elevated to the dignity of being a concept in its own right†29 originated. It is subsequently unclear now as to whether it should be regarded as â€Å"a discrete analytical concept around which arguments may be constructed, or merely as a slippery expression reflective of the fairness, justice and reasonableness of imposing a duty of care upon the defendant in the light of the nature of his relationship with the claimant. 30 To bring to a close, the term ‘ neighbour’ and proximity clearly have a much wider interpretation – physical proximity, causal proximity or indeed the denotation of a legal relationship. Furthermore, if this test is satisfied, it is then up to the court to decide whether any policy reasons (or otherwise) exist so as not to acknowledge a duty of care in that particular case. The elusiveness of how this dictum is interpreted may never be resolved. It is the application of policy to novel situations of what is fair, just and reasonable that has instigated the advancement of the neighbour principle.In other fields of law, the broader legal concepts of reasonableness and unconscionability are applied every day. The courts are in a state of uncertainty with regard to the dictum. It is evident that the law has had to expand considerably. So perhaps, in the future, the test of fair, just and reasonable as displayed in the Glencar31 case will be triumphant due to its conversion of the practical, everyday test for negligence into the legal test. Despite having its flaws, it still makes the law comprehensible to all. 29 30 31 Ibid at 13 Ibid at 13 Op cit 34