Malaysian Financial Reporting Standard 116 Essay

Malaysian Financial Reporting Standard 116 Property, Plant and Equipment This version includes amendments resulting from MFRSs with effective dates no later than 1 January 2012. Amendments with an effective date later than 1 January 2012 MFRS 116 has been amended by MFRS 13 Fair Value Measurement*. As those amendments have an effective date after 1 January 2012 they are not included in this edition. * effective date 1 January 2013 559 MFRS 116 CONTENTS paragraphs Preface INTRODUCTION IN1–IN15 MALAYSIAN FINANCIAL REPORTING STANDARD 116 PROPERTY, PLANT AND EQUIPMENT OBJECTIVE SCOPE DEFINITIONS RECOGNITION Initial costs Subsequent costs MEASUREMENT AT RECOGNITION Elements of cost Measurement of cost MEASUREMENT AFTER RECOGNITION Cost model Revaluation model Depreciation Depreciable amount and depreciation period Depreciation method Impairment Compensation for impairment DERECOGNITION DISCLOSURE TRANSITIONAL PROVISIONS EFFECTIVE DATE WITHDRAWAL OF OTHER PRONOUNCEMENTS 1 2–5 6 7–14 11 12–14 15–28 16–22 23–28 29–66 30 31–42 43–62 50–59 60–62 63 65–66 67–72 73–79 80 81–81E 82–83 560  © IFRS Foundation MFRS 116 Malaysian Financial Reporting Standard 116 Property, Plant and Equipment (MFRS 116) is set out in paragraphs 1–83. All the paragraphs have equal authority. MFRS 116 should be read in the context of its objective and the Basis for Conclusions, the Foreword to Financial Reporting Standards and the Conceptual Framework for Financial Reporting. MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.  © IFRS Foundation 561 MFRS 116 Preface The Malaysian Accounting Standards Board (MASB) is implementing its policy of convergence through adopting International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) for application for annual periods beginning on or after 1 January 2012. The IASB defines IFRSs as comprising: (a) International Financial Reporting Standards; (b) International Accounting Standards; (c) IFRIC Interpretations; and (d) SIC Interpretations. Malaysian Financial Reporting Standards (MFRSs) equivalent to IFRSs that apply to any reporting period beginning on or after 1 January 2012 are: (a) Malaysian Financial Reporting Standards; and (b) IC Interpretations. First-time application of MFRSs equivalent to IFRSs Application of this Standard will begin in the first-time adopter’s * first annual reporting period beginning on or after 1 January 2012 in the context  of adopting MFRSs equivalent to IFRSs. In this case, the requirements of MFRS 1 First-time Adoption of Malaysian Financial Reporting Standards must be observed. Application of MFRS 1 is necessary as otherwise such financial statements will not be able to assert compliance with IFRS. MFRS 1, the Malaysian equivalent of IFRS 1 First-time Adoption of International Financial Reporting Standards, requires prior period information, presented as comparative information, to be restated as if the requirements of MFRSs effective for annual period beginning on or after 1 January 2012 have always been applied, except when it (1) prohibits retrospective application in some aspects or (2) allows the first-time adopter to use one or more of the exemptions or except ions contained therein. This means that, in preparing its first MFRS financial statements* for a financial period beginning on or after 1 January 2012, the first-time adopter shall refer to the provisions contained in MFRS 1 on matters relating to transition and effective dates instead of the transitional provision and effective date contained in the respective MFRSs. This differs from previous requirements where an entity accounted for changes of accounting policies in accordance with the specific transitional provisions contained in the respective Financial Reporting Standards (FRSs) or in accordance with FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors when the FRS did not include specific transitional provisions. * Appendix A of MFRS 1 defines first-time adopter and first MFRS financial statements. 562 MFRS 116 In this regard the effective and issuance dates contained in this Standard are those of the IASB’s and are inapplicable in the new MFRS framework since MFRS 1 requirements will be applied on 1 January 2012. Comparison and compliance with IAS 16 MFRS 116 is equivalent to IAS 16 Property, Plant and Equipment as issued and amended by the IASB, including the effective and issuance dates. Entities that comply with MFRS 116 will  simultaneously be in compliance with IAS 16. 563 MFRS 116 Introduction IN1 International Accounting Standard 16 Property, Plant and Equipment (IAS 16) replaces IAS 16 Property, Plant and Equipment (revised in 1998), and should be applied for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. The Standard also replaces the following Interpretations: ï‚ · ï‚ · ï‚ · SIC-6 Costs of Modifying Existing Software SIC-14 Property, Plant and Equipment—Compensation for the Impairment or Loss of Items SIC-23 Property, Plant and Equipment—Major Inspection or Overhaul Costs. IASB’s reasons for revising IAS 16 IN2 The International Accounting Standards Board developed this revised IAS 16 as part of its project on Improvements to International Accounting Standards. The project was undertaken in the light of queries and criticisms raised in relation to the Standards by securities regulators, professional accountants and other interested parties. The objectives of the project were to reduce or eliminate alternatives, redundancies and conflicts within the Standards, to deal with some convergence issues and to make other improvements. For IAS 16 the IASB’s main objective was a limited revision to provide additional guidance and clarification on selected matters. The IASB did not reconsider the fundamental approach to the accounting for property, plant and equipment contained in IAS 16. IN3 The main changes of IAS 16 IN4 The main changes from the previous version of IAS 16 are described below. Scope IN5 This Standard clarifies that an entity is required to apply the principles of this Standard to items of property, plant and equipment used to develop or maintain (a) biological assets and (b) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources. Recognition: subsequent costs  IN6 An entity evaluates under the general recognition principle all property, plant and equipment costs at the time they are incurred. Those costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service an item. The previous version of IAS 16 contained two recognition principles. An entity applied the second recognition principle to subsequent costs.  © 564 IFRS Foundation MFRS 116 Measurement at recognition: asset dismantlement, removal and restoration costs IN7 The cost of an item of property, plant and equipment includes the costs of its dismantlement, removal or restoration, the obligation for which an entity incurs as a consequence of installing the item. Its cost also includes the costs of its dismantlement, removal or restoration, the obligation for which an entity incurs as a consequence of using the item during a particular period for purposes other than to produce inventories during that period. The previous version of IAS 16 included within its scope only the costs incurred as a consequence of installing the item. Measurement at recognition: asset exchange transactions IN8 An entity is required to measure an item of property, plant and equipment acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets, at fair value unless the exchange  transaction lacks commercial substance. Under the previous version of IAS 16, an entity measured such an acquired asset at fair value unless the exchanged assets were similar. Measurement after recognition: revaluation model IN9 If fair value can be measured reliably, an entity may carry all items of property, plant and equipment of a class at a revalued amount, which is the fair value of the items at the date of the revaluation less any subsequent accumulated depreciation and accumulated impairment losses. Under the previous version of IAS 16, use of revalued amounts did not depend on whether fair values were reliably measurable. Depreciation: unit of measure IN10 An entity is required to determine the depreciation charge separately for each significant part of an item of property, plant and equipment. The previous version of IAS 16 did not as clearly set out this requirement. Depreciation: depreciable amount  IN11 An entity is required to measure the residual value of an item of property, plant and equipment as the amount it estimates it would receive currently for the asset if the asset were already of the age and in the condition expected at the end of its useful life. The previous version of IAS 16 did not specify whether the residual value was to be this amount or the amount, inclusive of the effects of inflation, that an entity expected to receive in the future on the asset’s actual retirement date. Depreciation: depreciation period IN12 An entity is required to begin depreciating an item of property, plant and equipment when it is available for use and to continue depreciating it until it  © IFRS Foundation 565 MFRS 116 is derecognised, even if during that period the item is idle. The previous version of IAS 16 did not specify when depreciation of an item began and specified that an entity should cease depreciating an item that it had retired from active use and was holding for disposal. Derecognition: derecognition date IN13 An entity is required to derecognise the carrying amount of an item of property, plant and equipment that it disposes of on the date the criteria for the sale of goods in IAS 18 Revenue would be met. The previous version of IAS 16 did not require an entity to use those criteria to determine the date on which it derecognised the carrying amount of a disposed-of item of property, plant and equipment. An entity is required to derecognise the carrying amount of a part of an item of property, plant and equipment if that part has been replaced and the entity has included the cost of the replacement in the carrying amount of the item. The previous version of IAS 16 did not extend its derecognition principle to such parts; rather, its recognition principle for subsequent expenditures effectively precluded the cost of a replacement from being included in the carrying amount of the item. IN14 Derecognition: gain classification IN15 An entity cannot classify as revenue a gain it realises on the disposal of an item of property, plant and equipment. The previous version of IAS 16 did not contain this provision. 566  © IFRS Foundation MFRS 116 Malaysian Financial Reporting Standard 116 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognised in relation to them. Scope 2 This Standard shall be applied in accounting for property, plant and equipment except when another Standard requires or permits a different accounting treatment. This Standard does not apply to: (a) property, plant and equipment classified as held for sale in accordance with MFRS 5 Non-current Assets Held for Sale and Discontinued Operations; 3 (b) biological assets related to agricultural activity (see MFRS 141 Agriculture); (c) the recognition and measurement of exploration and evaluation assets (see MFRS 6 Exploration for and Evaluation of Mineral Resources); or (d) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources. However, this Standard applies to property, plant and equipment used to develop or maintain the assets described in (b)–(d). 4 Other Standards may require recognition of an item of property, plant and equipment based on an approach different from that in this Standard. For example, MFRS 117 Leases requires an entity to evaluate its recognition of an item of leased property, plant and equipment on the basis of the transfer of risks and rewards. However, in such cases other aspects of the accounting treatment for these assets, including depreciation, are prescribed by this Standard. An entity using the cost model for investment property in accordance with MFRS 140 Investment Property shall use the cost model in this Standard. 5 Definitions 6 The following terms are used in this Standard with the meanings specified:  © IFRS Foundation 567 MFRS 116 Carrying amount is the amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other MFRSs, eg MFRS 2 Share-based Payment. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Entity-specific value is the present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction. An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. Property, plant and equipment are tangible items that: (a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and (b) are expected to be used during more than one period. Recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. Useful life is: (a) the period over which an asset is expected to be available for use by an entity;  or (b) the number of production or similar units expected to be obtained from the asset by an entity. Recognition 7 The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if: (a) it is probable that future economic benefits associated with the item will flow to the entity; and (b) the cost of the item can be measured reliably.  © 568 IFRS Foundation MFRS 116 8 Spare parts and servicing equipment are usually carried as inventory and recognised in profit or loss as consumed. However, major spare parts and stand-by equipment qualify as property, plant and equipment when an entity expects to use them during more than one period. Similarly, if the spare parts and servicing equipment can be used only in connection with an item of property, plant and equipment, they are accounted for as property, plant and equipment. This Standard does not prescribe the unit of measure for recognition, ie what constitutes an item of property, plant and equipment. Thus, judgement is required in applying the recognition criteria to an entity’s specific circumstances. It may be appropriate to aggregate individually insignificant items, such as moulds, tools and dies, and to apply the criteria to the aggregate value. An entity evaluates under this recognition principle all its property, plant and equipment costs at the time they are incurred. These costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. 9 10 Initial costs 11 Items of property, plant and equipment may be acquired for safety or environmental reasons. The acquisition of such property, plant and equipment, although not directly increasing the future economic benefits of any particular existing item of property, plant and equipment, may be necessary for an entity to obtain the future economic benefits from its other assets. Such items of property, plant and equipment qualify for recognition as assets because they enable an entity to derive future economic benefits from related assets in excess of what could be derived had those items not been acquired. For example, a chemical manufacturer may install new chemical handling processes to comply with environmental requirements for the production and storage of dangerous chemicals; related plant enhancements are recognised as an asset because without them the entity is unable to manufacture and sell chemicals. However, the resulting carrying amount of such an asset and related assets is reviewe d for impairment in accordance with MFRS 136 Impairment of Assets. Subsequent costs 12 Under the recognition principle in paragraph 7, an entity does not recognise in the carrying amount of an item of property, plant and equipment the costs of the day-to-day servicing of the item. Rather, these costs are recognised in profit or loss as incurred. Costs of day-to-day servicing are primarily the costs of labour and consumables, and may include the cost of small parts. The purpose of these expenditures is often described as for the ‘repairs and maintenance’ of the item of property, plant and equipment. Parts of some items of property, plant and equipment may require replacement at regular intervals. For example, a furnace may require relining  © 13 IFRS Foundation 569 MFRS 116 after a specified number of hours of use, or aircraft interiors such as seats and galleys may require replacement several times during the  life of the airframe. Items of property, plant and equipment may also be acquired to make a less frequently recurring replacement, such as replacing the interior walls of a building, or to make a nonrecurring replacement. Under the recognition principle in paragraph 7, an entity recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred if the recognition criteria are met. The carrying amount of those parts that are replaced is derecognised in accordance with the derecognition provisions of this Standard (see paragraphs 67–72). 14 A condition of continuing to operate an item of property, plant and equipment (for example, an aircraft) may be performing regular major inspections for faults regardless of whether parts of the item are replaced. When each major inspection is performed, its cost is recognised in the carrying amount of the item of property, plant and equipment as a replacement if the recognition criteria are satisfied. Any remaining carrying amount of the cost of the previous inspection (as distinct from physical parts) is derecognised. This occurs regardless of whether the cost of the previous inspection was identified in the transaction in which the item was acquired or constructed. If necessary, the estimated cost of a future similar inspection may be used as an indication of what the cost of the existing inspection component was when the item was acquired or constructed. Measurement at recognition 15 An item of property, plant and equipment that qualifies for recognition as an asset shall be measured at its cost. Elements of cost 16 The cost of an item of property, plant and equipment comprises: (a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates. (b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. (c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the  obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. 17 Examples of directly attributable costs are: (a) costs of employee benefits (as defined in MFRS 119 Employee Benefits) arising directly from the construction or acquisition of the item of property, plant and equipment; 570  © IFRS Foundation MFRS 116 (b) costs of site preparation; (c) initial delivery and handling costs; (d) installation and assembly costs; (e) costs of testing whether the asset is functioning properly, after deducting the net proceeds from selling any items produced while bringing the asset to that location and condition (such as samples produced when testing equipment); and professional fees. (f) 18 An entity applies MFRS 102 Inventories to the costs of obligations for dismantling, removing and restoring the site on which an item is located that are incurred during a particular period as a consequence of having used the item to produce inventories during that period. The obligations for costs accounted for in accordance with MFRS 102 or MFRS 116 are recognised and measured in accordance with MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. Examples of costs that are not costs of an item of property, plant and equipment are: (a) costs of opening a new facility; 19 (b) costs of introducing a new product or service (including costs of advertising and promotional activities); (c) costs of conducting business in a new location or with a new class of customer (including costs of staff training); and (d) administration and other general overhead costs. 20 Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. Therefore, costs incurred in using or redeploying an item are not included in the carrying amount of that item. For example, the following costs are not included in the carrying amount of an item of property, plant and equipment: (a) costs incurred while an item capable of operating in the manner intended by management has yet to be brought into use or is operated at less than full capacity; (b) initial operating losses, such as those incurred while demand for the item’s output builds up; and (c) 21 costs of relocating or reorganising part or all of an entity’s operations. Some operations occur in connection with the construction or development of an item of property, plant and equipment, but are not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management. These incidental operations may occur before or during the construction or development activities. For example, income may be earned through using a building site as a car park until construction starts. Because incidental operations are not  © IFRS Foundation 571 MFRS 116 necessary to bring an item to the location and condition necessary  for it to be capable of operating in the manner intended by management, the income and related expenses of incidental operations are recognised in profit or loss and included in their respective classifications of income and expense. 22 The cost of a self-constructed asset is determined using the same principles as for an acquired asset. If an entity makes similar assets for sale in the normal course of business, the cost of the asset is usually the same as the cost of constructing an asset for sale (see MFRS 102). Therefore, any internal profits are eliminated in arriving at such costs. Similarly, the cost of abnormal amounts of wasted material, labour, or other resources incurred in self-constructing an asset is not included in the cost of the asset. MFRS 123 Borrowing Costs establishes criteria for the recognition of interest as a component of the carrying amount of a self-constructed item of property, plant and equipment. Measurement of cost 23 The cost of an item of property, plant and equipment is the cash price equivalent at the recognition date. If payment is deferred beyond normal credit terms, the difference between the cash price equivalent and the total payment is recognised as interest over the period of credit unless such interest is capitalised in accordance with MFRS 123. One or more items of property, plant and equipment may be acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets. The following discussion refers simply to an exchange of one non-monetary asset for another, but it also applies to all exchanges described in the preceding sentence. The cost of such an item of property, plant and equipment is measured at fair value unless (a) the exchange transaction lacks commercial substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable. The acquired item is measured in this way even if an entity cannot immediately derecognise the asset given up. If the acquired item is not measured at fair value, its cost is measured at the carrying amount of the asset given up. An entity determines whether an exchange transaction has commercial substance by considering the extent to which its future cash flows are expected to change as a result of the transaction. An exchange transaction has commercial substance if: (a) the configuration (risk, timing and amount) of the cash flows of the asset  received differs from the configuration of the cash flows of the asset transferred; or 24 25 (b) the entity-specific value of the portion of the entity’s operations affected by the transaction changes as a result of the exchange; and (c) the difference in (a) or (b) is significant relative to the fair value of the assets exchanged. For the purpose of determining whether an exchange transaction has commercial substance, the entity-specific value of the portion of the entity’s 572  © IFRS Foundation MFRS 116 operations affected by the transaction shall reflect post-tax cash flows. The result of these analyses may be clear without an entity having to perform detailed calculations. 26 The fair value of an asset for which comparable market transactions do not exist is reliably measurable if (a) the variability in the range of reasonable fair value estimates is not significant for that asset or (b) the probabilities of the various estimates within the range can be reasonably assessed and used in estimating fair value. If an entity is able to determine reliably the fair value of either the asset received or the asset given up, then the fair value of the asset given up is used to measure the cost of the asset received unless the fair value of the asset received is more clearly evident. The cost of an item of property, plant and equipment held by a lessee under a finance lease is determined in accordance with MFRS 117. The carrying amount of an item of property, plant and equipment ma y be reduced by government grants in accordance with MFRS 120 Accounting for Government Grants and Disclosure of Government Assistance. 27 28 Measurement after recognition 29 An entity shall choose either the cost model in paragraph 30 or the revaluation model in paragraph 31 as its accounting policy and shall apply that policy to an entire class of property, plant and equipment. Cost model 30 After recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment losses. Revaluation model 31 After recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. The fair value of items of plant and equipment is usually their market value determined by appraisal. If there is no market-based evidence of fair value because of the specialised nature of the item of property, plant and equipment and the item is rarely 32 33  © IFRS Foundation 573 MFRS 116 sold, except as part of a continuing business, an entity may need to estimate fair value using an income or a depreciated replacement cost approach. 34 The frequency of revaluations depends upon the changes in fair values of the items of property, plant and equipment being revalued. When the fair value of a revalued asset differs materially from its carrying amount, a further revaluation is required. Some items of property, plant and equipment experience significant and volatile changes in fair value, thus necessitating annual revaluation. Such frequent revaluations are unnecessary for items of property, plant and equipment with only insignificant changes in fair value. Instead, it may be necessary to revalue the item only every three or five years. When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is treated in one of the following ways: (a) restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals its revalued amount. This method is often used when an asset is revalued by means of applying an index to determine its depreciated replacement cost. 35 (b) eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset. This method is often used for buildings. The amount of the adjustment arising on the restatement or elimination of accumulated depreciation forms part of the increase or decrease in carrying amount that is accounted for in accordance with paragraphs 39 and 40. 36 If an item of property, plant and equipment is revalued, the entire class of property, plant and equipment to which that asset belongs shall be revalued. A class of property, plant and equipment is a grouping of assets of a similar nature and use in an entity’s operations. The following are examples of separate classes: (a) land; 37 (b) land and buildings; (c) machinery; (d) ships; (e) (f) aircraft; motor vehicles; (g) furniture and fixtures; and (h) office equipment. 574  © IFRS Foundation MFRS 116 38 The items within a class of property, plant and equipment are revalued simultaneously to avoid selective revaluation of assets and the reporting of amounts in the financial statements that are a mixture of costs and values as at different dates. However, a class of assets may be revalued on a rolling basis provided revaluation of the class of assets is completed within a short period and provided the revaluations are kept up to date. If an asset’s carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. If an asset’s carrying amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss. However, the decrease shall be recognised in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognised in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus. The revaluation surplus included in equity in respect of an item of property, plant and equipment may be transferred directly to retained earnings when the asset is derecognised. This may involve transferring the whole of the surplus when the asset is retired or disposed of. However, some of the surplus may be transferred as the asset is used by an entity. In such a case, the amount of the surplus transferred would be the difference between depreciation based on the revalued carrying amount of the asset and  depreciation based on the asset’s original cost. Transfers from revaluation surplus to retained earnings are not made through profit or loss. The effects of taxes on in come, if any, resulting from the revaluation of property, plant and equipment are recognised and disclosed in accordance with MFRS 112 Income Taxes. 39 40 41 42 Depreciation 43 Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately. An entity allocates the amount initially recognised in respect of an item of property, plant and equipment to its significant parts and depreciates separately each such part. For example, it may be appropriate to depreciate separately the airframe and engines of an aircraft, whether owned or subject to a finance lease. Similarly, if an entity acquires property, plant and equipment subject to an operating lease in which it is the lessor, it may be appropriate to depreciate separately amounts reflected in the cost of that item that are attributable to favourable or unfavourable lease terms relative to market terms. 44  © IFRS Foundation 575 MFRS 116 45 A significant part of an item of property, plant and equipment may have a useful life and a depreciation method that are the same as the useful life and the depreciation method of another significant part of that same item. Such parts may be grouped in determining the depreciation charge. To the extent that an entity depreciates separately some parts of an item of property, plant and equipment, it also depreciates separately the remainder of the item. The remainder consists of the parts of the item that are individually not significant. If an entity has varying expectations for these parts, approximation techniques may be necessary to depreciate the remainder in a manner that faithfully represents the consumption pattern and/or useful life of its parts. An entity may choose to depreciate separately the parts of an item that do not have a cost that is significant in relation to the total cost of the item. The depreciation charge for each period shall be recognised in prof it or loss unless it is included in the carrying amount of another asset. The depreciation charge for a period is usually recognised in profit or loss. However, sometimes, the future economic benefits embodied in an asset are absorbed in producing other assets. In this case, the depreciation charge constitutes part of the cost of the other asset and is included in its carrying amount. For example, the depreciation of manufacturing plant and equipment is included in the costs of conversion of inventories (see MFRS 102). Similarly, depreciation of property, plant and equipment used for development activities may be included in the cost of an intangible asset recognised in accordance with MFRS 138 Intangible Assets. Depreciable amount and depreciation period 50 51 The depreciable amount of an asset shall be allocated on a systematic basis over its useful life. The residual value and the useful life of an asset shall be reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s) shall be accounted for as a change in an accounting estimate in accordance with MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Depreciation is recognised even if the fair value of the asset exceeds its carrying amount, as long as the asset’s residual value does not exceed its carrying amount. Repair and maintenance of an asset do not negate the need to depreciate it. The depreciable amount of an asset is determined after deducting its residual value. In practice, the residual value of an asset is often  insignificant and therefore immaterial in the calculation of the depreciable amount. The residual value of an asset may increase to an amount equal to or greater than the asset’s carrying amount. If it does, the asset’s depreciation charge is 46 47 48 49 52 53 54 576  © IFRS Foundation MFRS 116 zero unless and until its residual value subsequently decreases to an amount below the asset’s carrying amount. 55 Depreciation of an asset begins when it is available for use, ie when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with MFRS 5 and the date that the asset is derecognised. Therefore, depreciation does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated. However, under usage methods of depreciation the depreciation charge can be zero while there is no production. The future economic benefits embodied in an asset are consumed by an entity principally through its use. However, other factors, such as technical or commercial obsolescence and wear and tear while an asset remains idle, often result in  the diminution of the economic benefits that might have been obtained from the asset. Consequently, all the following factors are considered in determining the useful life of an asset: (a) expected usage of the asset. Usage is assessed by reference to the asset’s expected capacity or physical output. 56 (b) expected physical wear and tear, which depends on operational factors such as the number of shifts for which the asset is to be used and the repair and maintenance programme, and the care and maintenance of the asset while idle. (c) technical or commercial obsolescence arising from changes or improvements in production, or from a change in the market demand for the product or service output of the asset. (d) legal or similar limits on the use of the asset, such as the expiry dates of related leases. 57 The useful life of an asset is defined in terms of the asset’s expected utility to the entity. The asset management policy of the entity may involve the disposal of assets after a specified time or after consumption of a specified proportion of the future economic benefits embodied in the asset. Therefore, the useful life of an asset may be shorter than its economic life. The estimation of the useful life of the asset is a matter of judgement based on the experience of the entity with similar assets. Land and buildings are separable assets and are accounted for separately, even when they are acquired together. With some exceptions, such as quarries and sites used for landfill, land has an unlimited useful life and therefore is not depreciated. Buildings have a limited useful life and therefore are depreciable assets. An increase in the value of the land on which a building stands does not affect the determination of the depreciable amount of the building. If the cost of land includes the costs of site dismantlement, removal and restoration, that portion of the land asset is depreciated over the period of benefits obtained by incurring those costs. In some cases, the land itself may 58 59  © IFRS Foundation 577 MFRS 116 have a limited useful life, in which case it is depreciated in a manner that reflects the benefits to be derived from it. Depreciation method 60 61 The depreciation method used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity. The depreciation method applied to an asset shall be reviewed at least at each financial year-end and, if there has been a significant change in the expected pattern of consumption of the future economic benefits embodied in the asset, the method shall be changed to reflect the changed pattern. Such a change shall be accounted for as a change in an accounting estimate in accordance with MFRS 108. A variety of depreciation methods can be used to allocate the depreciable amount of an asset on a systematic basis over its useful life. These methods include the straight-line method, the diminishing balance method and the units of production method. Straight-line depreciation results in a constant charge over the useful life if the asset’s residual value does not change. The diminishing balance method results in a decreasing charge over the useful life. The units of production method results in a charge based on the expected use or output. The entity selects the method that most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. That method is applied consistently from period to period unless there is a change in the expected pattern of consumption of those future economic benefits. 62 Impairment 63 To determine whether an item of property, plant and equipment is impaired, an entity applies MFRS 136 Impairment of Assets. That Standard explains how an entity reviews the carrying amount of its assets, how it determines the recoverable amount of an asset, and when it recognises, or reverses the recognition of, an impairment loss. [Deleted by IASB] 64 Compensation for impairment 65 Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up shall be included in profit or loss when the compensation becomes receivable. Impairments or losses of items of property, plant and equipment, related claims for or payments of compensation from third parties and any subsequent purchase or construction of replacement assets are separate economic events and are accounted for separately as follows: (a) impairments of items of property, plant and equipment are recognised in accordance with MFRS 136; 66 578  © IFRS Foundation MFRS 116 (b) derecognition of items of property, plant and equipment retired or disposed of is determined in accordance with this Standard; (c) compensation from third parties for items of property, plant and equipment that were impaired, lost or given up is included in determining profit or loss when it becomes receivable; and (d) the cost of items of property, plant and equipment restored, purchased or constructed as replacements is determined in accordance with this Standard. Derecognition 67 The carrying amount of an item of property, plant and equipment shall be derecognised: (a) on disposal; or (b) when no future economic benefits are expected from its use or disposal. 68 The gain or loss arising from the derecognition of an item of property, plant and equipment shall be included in profit or loss when the item is derecognised (unless MFRS 117 requires otherwise on a sale and leaseback). Gains shall not be classified as revenue. However, an entity that, in the course of its ordinary activities, routinely sells items of property, plant and equipment that it has held for rental to others shall transfer such assets to inventories at their carrying amount when they cease to be rented and become held for sale. The proceeds from the sale of such assets shall be recognised as revenue in accordance with MFRS 118 Revenue. MFRS 5 does not apply when assets that are held for sale in the ordinary course of business are transferred to inventories. The disposal of an item of property, plant and equipment may occur in a variety of ways (eg by sale, by entering into a finance lease or by donation). In determining the date of disposal of an item, an entity applies the criteria in MFRS 118 for recognising revenue from the sale of goods. MFRS 117 applies to disposal by a sale and leaseback. If, under the recognition principle in paragraph 7, an entity recognises in the carrying amount of an item of property, plant and equipment the cost of a replacement for part of the item, then it derecognises the carrying amount of the replaced part regardless of whether the replaced part had been depreciated separately. If it is not practicable for an entity to determine the carrying amount of the replaced part, it may use the cost of the replacement as an indication of what the cost of the replaced part was at the time it was acquired or constructed. The gain or loss arising from the derecognition of an item of property, plant and equipment sha ll be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. 68A 69 70 71  © IFRS Foundation 579 MFRS 116 72 The consideration receivable on disposal of an item of property, plant and equipment is recognised initially at its fair value. If payment for the item is deferred, the consideration received is recognised initially at the cash price equivalent. The difference between the nominal amount of the consideration and the cash price equivalent is recognised as interest revenue in accordance with MFRS 118 reflecting the effective yield on the receivable. Disclosure 73 The financial statements shall disclose, for each class of property, plant and equipment: (a) the measurement bases used for determining the gross carrying amount; (b) the depreciation methods used; (c) the useful lives or the depreciation rates used; (d) the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period; and (e) a reconciliation of the carrying amount at the beginning and end of the period showing: (i) (ii) additions; assets classified as held for sale or included in a disposal group classified as held for sale in accordance with MFRS 5 and other disposals; acquisitions through business combinations; increases or decreases resulting from revaluations under paragraphs 31, 39 and 40 and from impairment losses recognised or reversed in other comprehensive income in accordance with MFRS 136; impairment losses recognised in profit or loss in accordance with MFRS 136; impairment losses reversed in profit or loss in accordance with MFRS 136; (iii) (iv) (v) (vi) (vii) depreciation; (viii) the net exchange differences arising on the translation of the financial statements from the functional currency into a different presentation currency, including the translation of a foreign operation into the presentation currency of the reporting entity; and (ix) other changes. 580  © IFRS Foundation MFRS 116 74 The financial statements shall also disclose: (a) the existence and amounts of restrictions on title, and property, plant and equipment pledged as security for liabilities; (b) the amount of expenditures recognised in the carrying amount of an item of property, plant and equipment in the course of its construction; (c) the amount of contractual commitments for the acquisition of property, plant and equipment; and (d) if it is not disclosed separately in the statement of comprehensive income, the amount of compensation from third parties for items of property, plant and equipment that were impaired, lost or given up that is included in profit or loss. 75 Selection of the depreciation method and estimation of the useful life of assets are matters of judgement. Therefore, disclosure of the methods adopted and the estimated useful lives or depreciation rates provides users of financial statements with information that allows them to review the policies selected by management and enables comparisons to be made with other entities. For similar reasons, it is necessary to disclose: (a) depreciation, whether recognised in profit or loss or as a part of the cost of other assets, during a period; and (b) accumulated depreciation at the end of the period. 76 In accordance with MFRS 108 an entity discloses the nature and effect of a change in an accounting estimate that has an effect in the current period or is expected to have an effect in subsequent periods. For property, plant and equipment, such disclosure may arise from changes in estimates with respect to: (a) residual values; (b) the estimated costs of dismantling, removing or restoring items of property, plant and equipment; (c) useful lives; and (d) depreciation methods. 77 If items of property, plant and equipment are stated at revalued amounts, the following shall be disclosed: (a) the effective date of the revaluation; (b) whether an independent valuer was involved; (c) the methods and significant assumptions applied in estimating the items’ fair values; (d) the extent to which the items’ fair values were determined directly by reference to observable prices in an active market or recent market transactions on arm’s length terms or were estimated using other valuation techniques;  © IFRS Foundation 581 MFRS 116 (e) for each revalued class of property, plant and equipment, the carrying amount that would have been recognised had the assets been carried under the cost model; and the revaluation surplus, indicating the change for the period and any restrictions on the distribution of the balance to shareholders. (f) 78 In accordance with MFRS 136 an entity discloses information on impaired property, plant and equipment in addition to the information required by  paragraph 73(e)(iv)–(vi). Users of financial statements may also find the following information relevant to their needs: (a) the carrying amount of temporarily idle property, plant and equipment; 79 (b) the gross carrying amount of any fully depreciated property, plant and equipment that is still in use; (c) the carrying amount of property, plant and equipment retired from active use and not classified as held for sale in accordance with MFRS 5; and  (d) when the cost model is used, the fair value of property, plant and equipment when this is materially different from the carrying amount. Therefore, entities are encouraged to disclose these amounts. Transitional provisions 80 The requirements of paragraphs 24–26 regarding the initial measurement of an item of property, plant and equipment acquired in an exchange of assets transaction shall be applied prospectively only to future transactions. Effective date 81 An entity shall apply this Standard for annual periods beginning on or after 1 January 2005. Earlier application is encouraged. If an entity applies this Standard for a period beginning before 1 January 2005, it shall disclose that fact. An entity shall apply the amendments in paragraph 3 for annual periods beginning on or after 1 January 2006. If an entity applies MFRS 6 for an earlier period, those amendments shall be applied for that earlier period. MFRS 101 Presentation of Financial Statements (IAS 1 Presentation of Financial Statements as revised by IASB in 2007) amended the terminology used throughout MFRSs. In addition it amended paragraphs 39, 40 and 73(e)(iv). An entity shall apply those amendments for annual periods beginning on or after 1 January 2009. If an entity applies MFRS 101 (IAS 1 revised by IASB in 2007) for an earlier period, the amendments shall be applied for that earlier period. 81A 81B 582  © IFRS Foundation MFRS 116 81C MFRS 3 Business Combinations (IFRS 3 Business Combinations as revised by IASB in 2008) amended paragraph 44. An entity shall apply that amendment for annual periods beginning on or after 1 July 2009. If an entity applies MFRS 3 (IFRS 3 revised by IASB in 2008) for an earlier period, the amendment shall also be applied for that earlier period. Paragraphs 6 and 69 were amended and paragraph 68A was added by Improvements to MFRSs (Improvements to IFRSs issued by IASB in May 2008). An entity shall apply those amendments for annual periods beginning on or after 1 January 2009. Earlier application is permitted. If an entity applies the amendments for an earlier period it shall disclose that fact and at the same time apply the related amendments to MFRS 107 Statement of Cash Flows. Paragraph 5 was amended by Improvements to MFRSs (Improvements to IFRSs issued by IASB in May 2008). An entity shall apply that amendment prospectively for annual periods beginning on or after 1 January 2009. Earlier application is permitted if an entity also applies the amendments to paragraphs 8, 9, 22, 48, 53, 53A, 53B, 54, 57 and 85B of MFRS 140 at the same time. If an entity applies the amendment for an earlier period it shall disclose that fact. 81D 81E Withdrawal of other pronouncements 82 83 [Deleted by MASB] [Deleted by MASB]  © IFRS Foundation 583 MFRS 116 Deleted IAS 16 text Deleted IAS 16 text is produced for information only and does not form part of MFRS 116. Paragraph 82 This Standard supersedes IAS 16 Property, Plant and Equipment (revised in 1998). Paragraph 83 This Standard supersedes the following Interpretations: (a) SIC-6 Costs of Modifying Existing Software; (b) SIC-14 Property, Plant and Equipment—Compensation for the Impairment or Loss of Items; and (c) SIC-23 Property, Plant and Equipment—Major Inspection or Overhaul Costs. 584  © IFRS Foundation

Irrationalism

TABLE OF CONTENTS: 1: Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 2: What is Irrationalism?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 3: Origins of Irrationalism†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 3. 1: The Limits of Rationalism†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2 3. 2: The Religious Issue†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 4: Historical Synopsis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 4. 1: Ancient Greek Era†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 4. 2: Medieval Mysticism†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4 4. 3: Modern Era†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4. 4: The Historical Culmination of Irrationalism†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 4. 5: The Twentieth Century†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 5: Critical Evaluation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦7 5. 1: Irrational vs. non-rational†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 6: Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 7: References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 1. 0: INTRODUCTION: The term irrationalism, which depicts a 19th and early 20th century philosophical movement, is a trend that claims to enrich or broaden human apprehension of life beyond the horizon of reason.This movement, as shall be demonstrated in this work, arose as a sort of reaction against the traditional over bloating of the capacities of human reason. Thus, it sought to incorporate other aspects of human life such em otions, will, passion and even faith. Accordingly, such movements like voluntarism, mysticism or religion, romanticism et al, find their place within this trend. But it must be noted at once that this movement does not seek to negate or refute the capacities of human reason.Instead it seeks to postulate that with rationality alone, human beings cannot explore certain areas of life which are in themselves unavoidable experiential data of human life. It is to delineate elaborately on the tenets of this trend that this work is poised to do. To achieve this, we have opted to render this exposition in accordance with the above given outline. 2. 0: WHAT IS IRRATIONALISM? Irrationalism refers to â€Å"any movement of thought that emphasizes the non-rational or irrational element of reality over and above the rational† .More than a school of thought, irrationalism is a multi-faceted reaction against the dominance of rationalism. As such, it played a significant role in western cultur e towards the end of the nineteenth century and at the beginning of the twentieth century. Irrationalism need not be opposed to reason. It can consist of a simple awareness that the rational aspect of things tends to be overemphasized and that this needs to be compensated by an emphasis on intuition, feeling, emotions, and the subconscious, etc . 3. 0: ORIGINS OF IRRATIONALISM:There are at least two main sources of irrationalism, viz: ?The Limits of Rationalism: First, we see that even the most consistently rationalist approach of the world will yield, in the end, some ultimate notions that can no longer be grasped or expressed through rational language. Such include questions of truth, goodness, beauty, and so on). This clearly appears in ancient Greek philosophy. In the eighteenth century Enlightenment, a somewhat superficial confidence in reason was often maintained, and the question about ultimate realities was thus avoided.Still, Voltaire, a typical representative of the  "Lumieres,† was very skeptical about the natural lights of human reason and the ability to find definitive answers. Nineteenth century Positivism, finally, appeared as the culmination of human confidence in reason based on scientific advances. The positivists’ belief that scientific reason would make all other approaches obsolete, however, was soon largely rejected as a naive illusion. Irrationalism has therefore acted as a recurrent challenge to the belief that analytical or deductive reasoning was the alpha and omega of human mental activity . The Religious Issue: A second challenge to the preponderance of reason has come from the religious side. All the world’s religious traditions, based on immediate experience as much as revelation, have an acute awareness that the human predicament is at odds with the very ideal of perfection and happiness. In Christian thought, there is the dual notion of God’s judgment and his grace, a position best expressed by th e apostle Paul and revived most famously by the Reformers, such as Martin Luther King Jnr. nd Jean Calvin. The very notion of sin in a world created by an omnipotent and good God seems contradictory to reason. This dissonance is heightened by such paradoxical biblical formulations like, â€Å"those who want to live will die and those who want to die will live† and â€Å"the first shall be the last. † Thus, in the religious context, irrationalism takes on the nature of paradox and mystery. It is not possible for unaided human reason to fully grasp the meaning of the human condition.It has to be accepted that two basic facts (God and evil) coexists in a way that cannot be rationally explained. Only faith or spiritual intuition can somehow comprehend what is meaningless for reason alone. This position maintains a strong presence, even where attempts at offering rational explanations abound. In various different contexts, other world religions have approached the same basi c issue and offered a response that invariably amounted to a rejection of rationalism .In the religious world of the Far East (notably India and China), the response has often been sought in higher wisdom involving spiritual perception and allowing the believer to see how seemingly contradictory notions can harmonize on a higher plane. There is also a general insistence on the need to find the right attitude in approaching everyday life and its ultimate questions. Finally, in Zen Buddhism, enlightenment through direct experience, by which one is jolted out of one’s habitual condition, is seen as the answer.Thus, religion’s response to the limits of reason tends to have a strong emotional, experiential, and voluntary component. 4. 0: HISTORICAL SYNOPSIS: The history of western philosophy has been overwhelmingly dominated by the notion that reason and intellect determine the value of thought, culminating in eighteenth century rationalism, nineteenth century positivism, a nd twentieth century logical positivism . Irrationalism has thus mostly been a secondary reaction defended by a few minor figures, an element embedded in the thought of otherwise rational thinkers, or an underlying and largely hidden element.A closer look, however, reveals the importance of non-rational issues and the emotional factor, notably in fields like ethics, aesthetics, education, axiology, and even such a bulwark of rationalism as epistemology. Irrationalism became a major force in western culture for the first time in the nineteenth century. Its impact reached far beyond philosophy and the academia and was felt in the whole of society, including the political sphere, from the Romantic period to World War II, and beyond. ?Ancient Greek Era:Ancient Greek philosophy is generally recognized as the paragon of rational thinking. Its giants, Plato and Aristotle, viewed the rational mind as the essence of human identity. For Plato in particular, the realm of emotions linked to phy sical existence represented the lower counterpart to the eternal beauty and goodness of immaterial, rational souls. But his philosophy in fact culminates in a strongly mystical form of idealism. The immortality of the soul, eternal truth and beauty in particular, are introduced as the result of a higher insight, not of deductive or analytical thought.Such a trend continued in Neo-Platonism. Plato and his mentor Socrates are also related to the Mystery religions of ancient Greece which are often referred to in mythical form in the Platonic dialogues . The Eleusian Mysteries and the Delphic Sibyl are two examples of what Nietzsche would later call the â€Å"Dionysian element of exuberance and spiritual drunkenness† in Greek culture—an element that would combine with the plastic and formal element of light, the Apollonian element, to produce the masterpieces of Greek culture.In earlier Greek philosophy, that element could already be found in the works of Empedocles and Py thagoras. It was very influential in Greek tragedy and poetry. The cryptic aphorisms of Heraclitus, another pre-Socratic philosopher, also stand in stark contrast to the smooth flow of rational discourse, though his dialectic does not directly advocate irrationalism . Finally, the notion of destiny of fate arbitrarily willed by the gods of the Olymp constitutes an endorsement of irrationalism. Within such notions, things don’t make sense.They just have to be accepted. ?Medieval Mysticism: In medieval thought, irrationalism appears in the form of mysticism and voluntarism. Even Thomas Aquinas, probably the most rationally oriented of the middle age theologians, had a mystical experience towards the end of his life in which it appeared to him that all he had written was like â€Å"straw† . Mystically oriented writers like Meister Eckhart and Jakob Bohme saw knowledge of God as limited to negative theology. For the via negativa, the only positive statements that could be made about God were those negating ossible limitations of his Being (God is not finite, etc. ). The whole history of medieval thought – which reflected Christianity, Judaism and Muslim—was about defining the boundaries of the rational philosophical approach in its confrontation with faith, i. e. an approach that transcends human reason. ?Modern Era: Among the great metaphysicians of the seventeenth century such as Descartes, Leibniz, inter alia, French Catholic thinker Blaise Pascal represents an illustrious exception.The highly intellectually gifted mathematician came as an early precursor of Christian existentialism and famously stated that the â€Å"heart has its reasons that are unknown to reason† . Pascal also made the equally famous distinction between the God of Abraham, Isaac, and Jacob and the â€Å"God of the philosophers,† i. e. , understanding through revelation and understanding through reason . Pascal’s position somehow forms a contin uation of the Augustinian tradition defended by Duns Scotus and its volutaristic emphasis on the will to believe, rather than rational conviction. The Historical Culmination of Irrationalism: The real breakthrough of irrationalism came with the backlash against the rationalism of the Enlightenment and the subsequent wave of Positivism. At the end of the eighteenth century, Immanuel Kant had concluded that reason cannot give certain and ultimate knowledge about reality, especially not about God and the transcendent. In this, he wanted to make place for faith, which he also saw as a form of reason. The question over what counts as reason and what does not would thus later become an important one.For many, â€Å"anything not related to scientific knowledge of the empirically known universe does not qualify as reason† . For others, especially in the era of Romanticism, â€Å"the mind’s innate ability to recognize the reality of the Ultimate represents the highest peak of reason† . At this point, one has a convergence between rationalism and irrationalism, with mostly a difference of terminology. Friedrich Heinrich Jacobi, Jakob Friedrich Fries, and Johann Georg Hamann are noted representatives of that period .The German Idealists are another example of thought systems developed with great emphasis on rational thought, but culminating in often highly irrational speculation. This is true even of Hegel, and his panlogism, and much more so Schelling, especially in his later, mystical phase . With Arthur Schopenhauer, irrationalism is embraced fully in the form of voluntarism . A blind will is presented as the foundation of existence, while the world of rational representations only forms the deceptive surface of things (in ways similar to Indian thought).Friedrich Nietzsche was equally skeptical of the west’s rational tradition and its shallow ethical codes, stressing such notions as the will to power and the playfulness of a child . In the Christian tradition, Soren Kierkegaard was strongly critical of the rational constructions of Hegel and proposed the â€Å"leap of faith† of the existentialist attitude as an alternative. His overall orientation, usually without the Christian connotation, would be maintained in the thought of twentieth century existentialists like Jean-Paul Sartre.For Henri Bergson, whose intuitivism was based on the notion of elan vital (vital thrust), rational thought was equally ill-equipped to grasp the essence of things. Finally, even a strongly intellectual philosophy like Edmund Husserl’s phenomenology is based on intuition as an element that comes prior to rational analysis in the perception of reality. The above list of names, to which many others could be added, exemplifies what Paul Tillich had in mind when he referred to the strong irrational undercurrent in western thought.Philosophical irrationalism would expand into many other areas of culture, including history (as sho wn in the works of Wilhelm Dilthey and Oswald Spengler) and, most famously in psychoanalysis (as shown in the works of Sigmund Freud, Carl-Gustav Jung). The latter’s implication is that irrational unconscious forces are really shaping human life. William James would espouse another form of non-rational emphasis in explaining the workings of the mind and that is Pragmatism, which argues that positions are essentially justified when they work. The Twentieth Century: The clash between rationalism and irrationalism would continue throughout the twentieth century, with rationalism being reinforced by the stunning development of science and irrationalism being bolstered by the obvious senselessness of many world events. A possible point of convergence has been contemporary science’s recognition of the inadequacy of the traditional mechanistic worldview and its advocacy of a much greater sophistication in attempts to grasp the nuances of its key notions.This has led many to a bandon scientific reductionism and its denial of the unfathomable realm of the spirit. In the philosophical world, postmodernism has seen a wholesale rejection of all hitherto accepted certainties. Thus, there is paradox of a contemporary world where humankind has a firmer grasp and control over natural phenomena than ever, but one in which, at the same time, the rational nature of that world has been increasingly challenged in ontology and epistemology as well as in ethics (e. g.Nietzsche and more recently Michel Foucault and their refusal to accept given norms) . 5. 0: CRITICAL EVALUATION: From the foregoing, it is clear that much of what passes for irrationalism, in fact, does not challenge the validity of reason, but rather opens the possibilities of other realms of investigation that had been previously ignored by the rationalist tradition. This comes together with a rebellion against the rationalization of a reality that is perceived as absurd or ethical rules that are perceiv ed to be abusive in their pretension to be rationally grounded.Nevertheless, the thrust of our evaluation herein shall focus on distinguishing between two terms that may seem compounded. This shall enable us with the ability to conclude whether the philosophers of this trend were either irrational or non-rational. ?Irrational vs. Non-rational: The difference between non-rational and irrational is not as easy to define as it may appear. German authors, like the philosopher of religion Rudolf Otto, often use the equivalent of the English â€Å"irrational,† but translators of their writings prefer to use â€Å"non-rational† to avoid giving the impression of an anti-rational bias.Indeed, in a context such as Otto’s, irrational is meant to convey the meaning of something that eludes the grasp of reason, a depth dimension of the human psyche that cannot be appropriately expressed in rational language. It does not mean that the author rejects the rational discourse alt ogether. In the case of Otto, the contrary is the case. This author strongly stresses the need for academic discourse to proceed according to strict rational rules and to avoid the excesses of romantic enthusiasm. Otto merely wants to show that reason is not alone and that once it has spoken, something remains that can nly be grasped intuitively and expressed in symbols. Similarly, today’s sociology of religion generally understands myths as a genuine and irreplaceable component of the human discourse, one that can express certain realities better than straight scientific talk and even reach where that talk cannot go. There is no negative connotation attached to myth under these circumstances. 6. 0: CONCLUSION: In the end, the understanding of irrationalism in the sense of non-rational or irrational is a matter of worldview.For those who consider that the universe and if applicable, the Supreme Being, form a whole that is non-contradictory and where intellect, emotion, and wi ll coexist harmoniously as different aspects of that reality, non-rational will have to be chosen as the proper expression. In that perspective, irrational will have to be reserved for the cases of opinions or behavior that fails to abide by the accepted rules of reason—not to describe that which transcends the realm of reason. In the main, few will defend a strong version of the opposite position that contradiction lies at the heart of everything.Such a position would make any discourse impossible, including that of those who hold this position. But various thinkers have emphasized the paradoxical nature of reality. In such a view, reality may not be fully contradictory, but it presents essential features that will always stand in paradoxical position to each other. Such is in general, the position of dialectical philosophy. Other strong forms of irrationalism are those which argue a fundamentally absurd nature of the world or the complete irrelevance of the rational discour se.Be these as they may, we rest our case in the contention that irrationalism stands at par with rationalism with only a slight difference in their respective emphasis. REFERENCES: ?Benne, Kenneth D, Contemporary Irrationalism and the Idea of Rationality, In: Studies in Philosophy and Education. Volume 6, Number 4 / December, 1969 ? Bergson, Henri, Creative Evolution. Dover Publications, 1998, ISBN 978-0486400365 ? Dewolf, L. H, Religious Revolt Against Reason, Greenwood Publishing, ISBN 978-0837100616 ? Kierkegaard, Soren, Concluding Unscientific Postscript.Princeton University Press, 1941. ISBN 978-0691019604 ? Kierkegaard, Soren, and Howard Vincent. Philosophical Fragments, Princeton University Press, 1962. ISBN 978-0691019550 ? Nietzsche, Friedrich, Beyond Good and Evil. Digireads. com, 2005, ISBN 978-1420922509 ? Nietzsche, Friedrich, and Walter Kaufmann, On the Genealogy of Morals and Ecce Homo, Vintage, 1989. ISBN 978-0679724629 ? Pascal, Blaise, Pensees, LGF Livre de Poche, 2000, ISBN 978-2253160694 ? Plato, The Symposium, Penguin Classics, 2003, ISBN 978-0140449273 ?Schopenhauer, Arthur, â€Å"Die Welt als Wille und Vorstellung†, 1818/1819, vol. 2: 1844 (The World as Will and Representation, sometimes also known in English as The World as Will and Idea), Dover Publications, 1966. ISBN 978-0486217628. ?Stumpf, Samuel E, â€Å"Philosophy: History and Problems†, The McGraw-Hill Companies, Inc. , 1221, Avenue of the Americas, New York, NY, 10020, ISBN 0-07-240635-6, Sixth Edition, 2003. OTHER SOURCES: ?Encyclopedia Britannica. com. ?Guide to Philosophy on the Internet. ?Routledge Encyclopedia of Philosophy. ?The Internet Encyclopedia of Philosophy.

Aristotle vs. Plato Essay

Born in Northern Greece. Aristotle’s male parent was a tribunal doctor to the male monarch of Macedon where Aristotle himself would be requested by King Philip II to tutor his boy Alexander ( who grew up to go â€Å"Alexander the Great† ) . Aristotle. one of the most influential minds in doctrine including political theory is besides known as the legendary Greek philosopher. logician. scientist. and pupil of Plato. Aristotle studied in Plato’s Academy in Athens. Plato being the pupil of Socrates and besides known as the male parent of political theory helped educate and determine the head of immature Aristotle who so became known as the first political scientist. It was the diverse ambiance in which Aristotle was raised. along with his instruction and so his many travels that gave him the deepness of being able to see and see the good and the mistakes in the universe. Aristotle saw doctrine within the physical universe. He believed that our truths came from physically interrupting down systems and analyzing them to understand them. He had experience with travelling and seeing different universe governments. Aristotle believed one had to interrupt things down through empirical observation and scientifically. Therefore deriving his rubric of political scientist who used scientific methods to analyse and reason his beliefs. ideas. and sentiments. Aristotle believed that one must believe critically and rationally utilizing inductive ground and an empiricist attack. Aristotle studied over 100 governments and analyzed which 1s were the strongest. how they functioned. and which best served the people. He concluded that the best type of authorities government was that of one with a strong in-between category to equilibrate the upper and lower categories to make the most stable and merely society. He believed that this government would be a combination of facets from a civil order ( an elected authorities that has the bulk of the common people’s best involvement ) . nobility ( regulation by the rich but with the people’s involvement in head ) . and monarchy ( a individual swayer if there is the possible that that metropolis has a qualified swayer as such which Aristotle admits is rare and can easy turn into dictatorship ) . Aristotle felt that most people did non hold adequate intelligence or power to manage running the authorities so it is best to set those in power who do. In his work. The Politics. Aristotle is explains that a metropolis is made up of many people. many persons who possess different positions and values. It is the diverse group of the metropolis that makes it a metropolis. If a metropolis were to go more and more a unit so it would lose its singularity in sentiments and do up and get the better of the full definition of a metropolis. Aristotle believes that people are entitled to their ain ideas. sentiments. and ownership. He states in his work ( Politics. page 40-41 ) that is non in the nature of a metropolis to be a unit. Aristotle believes that metropoliss are made up different parts and different entities that work together as a whole. They do non work as one but instead work together. Aristotle provinces that utmost fusion of a metropolis is non a good thing. Aristotle states that â€Å"The metropolis exists for the interest of a good life† . significance that a metropolis is at that place to map as an mercantile establishment to run into the demands of each of its citizens. Each citizen has his ain demand to be met. Aristotle realizes that what makes one individual happy may non do the other happy. â€Å"It is obvious that a metropolis which goes on going more and more of a unit will finally discontinue to be a metropolis at all. A metropolis. by its nature. is some kind of plurality† ( Aristotle. p. 39 ) . Aristotle is reasoning that if a metropolis becomes more and more incorporate so merely one voice is heard and it will so miss the really alone constituents of different voices. maps. and positions that made it a metropolis in the first topographic point. Aristotle believed that a metropoliss intent was to heighten plurality. a diversified metropolis that comes together to map. Known as the first political philosopher. Plato saw all physical things to be illusional. to be â€Å"a shadow of reality† ( Simile of a Cave ) and he stated that worlds are falsely led by their senses. Because of this. harmonizing to Plato- merely a society lead by Philosophers is a merely society ( Republic 473-475 ) . Plato believes that philosophers are the lone 1s to seek out absolute truth and justness and will hence be more educated and more inclined to do the best determinations for the group. At the same clip Plato thought that every individual had the possible to obtain ground. truth. and cognition by â€Å"stepping out of the cave and seeing the â€Å"light† . Plato believed that if people were educated decently so they would do good determinations. He believed people’s basic nature to be good. Whereas Aristotle tended to more of a realist and knew that some people did non hold it in them to â€Å"reason† or to â€Å"see the light† . In his book. The Republic. Plato discusses his belief in making a metropolis like utopia where there are no categories and everyone portions everything including adult females. kids and belongings. Plato’s positions are a bit unrealistic because he seems to non take into consideration human nature. Worlds are of course competitory and with clip would go more individualistic. Plato would non hold with Aristotle’s transition that a metropolis that grows into a unit will finally discontinue to be a metropolis. Plato on the reverse would province that the more of a unit the metropolis becomes. the more of Utopia it will be with everyone in common idea and understanding. common ownership of land. animate beings. and adult females. Plato’s ideal metropolis was that of a Utopian that would be governed by philosophers. He desired a perfect society with no jobs where people were happy. His society would dwell of three categories: swayers. aides and labourers. The swayers would be the philosopher male monarchs. would ever govern the province. The aides ( warriors ) would support the province and the labourers would be responsible for material production of goods needed by the province. Plato believed that the philosopher male monarchs should run the province being that they are the wisest and best possible campaigners. Plato was wholly molded by his instructor Socrates. taking on all of his ideas and doctrines whereas Plato’s pupil Aristotle took on many of his ain decisions and ideas many times beliing Plato’s. Plato was more of a dreamer while Aristotle was more of a realist. Where Plato sought out the â€Å"Utopia ideal situation† . Aristotle sought out how to break the current state of affairs. Another difference about Aristotle and Plato’s attack is that Plato is more focussed on the flawlessness of the universe and how people come to cognize about this. While Aristotle focal points more on the observations in nature and he knows non everything in nature is perfect. Aristotle. unlike Plato. was non focussed or concerned about the thought of a perfect society ; alternatively he wanted to better upon the 1 that he was portion of during his being. He believed that society should endeavor to use the best system it can achieve. He felt that Utopia was unrealistic and pointless. It would be best that society was at its highest possible and you can merely better upon the bing one. Therefore the integrity of a metropolis would decrease the individualism and different constituents that unambiguously make up a metropolis. therefore in the terminal the devastation of the really significance and map of what a metropolis ought to be.

The Principal Object of Management Essay Example | Topics and Well Written Essays - 1250 words - 5

The Principal Object of Management - Essay Example Most scholars have proposed different models of organization management as well as different models of choosing the model that best fits an organization. He is fast to note the interests of both the employer and employee are the same, and one cannot prosper without the other. Both the employer and the employee should train each individual to produce at his highest possible level of efficiency In his book, â€Å"The Sociology of Organization: Classical, Critical and Contemporary Reading, Handel, Michael (2003) provides a collection of several scholarly articles on Organizational Theories. I will examine some of the models in the collection, highlighting their weaknesses and their strengths. Weber, (2009, pg 50) classifies authority basing on the allegiance pledged by the subjects to their leaders. He identifies three types of authority. In Rational Authority, the subjects submit to authority by virtue of legal issues. They don’t have any intimate relational issues with the senior. This system is common in firms which have established themselves over time such that the subjects submit to the leader by virtue of submitting to the firm. A good example is in today’s modern states, whereby the citizens are not directly loyal to the president, or the government, but the legal system of the nation. Traditional authority, in its part, features subjects who submit to traditions surrounding the authority. For instance, the subjects of a kingdom pledge their allegiance to the king’s son simply because he is of a certain bloodline. He contrasts both of these to Charismatic Authority, in which subjects devote themselves to an individual based on her expertise an d exceptional character. He argues that the most superior form of administration in any organization is bureaucracy, which in its part implies individual domination by knowledge. This attributes to the precision of decision making,  clarity and consistency of knowledge.  

Journal Research Paper Example | Topics and Well Written Essays - 250 words

Journal - Research Paper Example Upon knowing this, the teacher would now know the customized approach he or she should take on such as the transitional bilingual education which is one that is most effective. This means that the teacher uses the child’s native language to introduce them to the context of a secondary language. Primary language of the student is now used as a bridge to develop literary comprehension with another language (Coonan, C. M., n.d.). Another way to develop linguistic competency through bilingual education would be the Dual Language Immersion. This means that teachers would practice a clear separation of two languages being used in each curriculum. What they do is that instead of translating each principle to another language which could sometimes not encompass the whole meaning or idea and cause confusion, they strengthen one’s understanding of a specific concept delivered in one language and when students already have a strong hold on it, they will then alter the language to further explicate a topic (Cook, Vivian, n.d.) Cook, Vivian (n.d.). Bilingual Cognition and Language Teaching. Virgin Media - Cable broadband, TV & phone plus mobile broadband & phone. Retrieved May 21, 2012, from http://homepage.ntlworld.com/vivian.c/Writings/Papers/BilCog&Teaching.htm Masters Degree Program - Bilingual Education - NYU Steinhardt. (n.d.). NYU Steinhardt School of Culture, Education, and Human Development. Retrieved May 21, 2012, from

Managing organizations and people Essay Example | Topics and Well Written Essays - 2500 words

Managing organizations and people - Essay Example The external environment is hostile and it is a matter of survival from day one. Forces nearest to a company, which affect its capability of serving its customers are micro environmental factors. For example, customers, competitors, suppliers, marketing teams are some such factors (Kotler, et al, 2004, p.164). In perfect competition, there is no limit to the number of these different players and equilibrium is maintained in the form of reasonable profits and market share for each supplier. In this competitive condition, â€Å"Price changes act as the mechanism whereby demand and supply are balanced (Sloman et al., 2006, Ch.4)†, and a win-win situation is created for the seller and the buyer. However, such an equilibrium can be disturbed by any number of factors, When he started out his career, Mr. Will Chase, the promoter of Tyrrells Crisps was producing potatoes which, as a commodity with no added value and no differentiation from other suppliers, was giving him wafer thin margins. Terms could be dictated by the buyers, who play one supplier against the other to beat down the prices or set unjustified conditions. Chase decided to counter this situation by diversifying his business, converting the potatoes into a branded product namely Tyrrells Crisps and thus adding value to his produce. It was a right step, with the margins on chips being better than those on potatoes since he was producing the raw materials himself. His innovative modifications of the hand-fryer resulted in a dramatically successful product – hand fried crisps, made from potatoes from own farms. He continued with his innovative efforts adding new flavours and newer vegetables to his line of products. Branching out from local farm shops and delicatessens, he tapped the big stores like Harrods, Selfridges and Villandry (Hirchkorn, Telegraph, 2004) with their marketing strength and

Financial theories Research Paper Example | Topics and Well Written Essays - 500 words

Financial theories - Research Paper Example This theory applied to establish the expected rate of return on investments to pricing models of modern assets. Some of the attributes include the support of what information can be supportive for strategic investment (Shankman, 1999). Agency theory aimed at the ever-present relationship of agency, in which delegation of work takes place from one person to another, usually the principal and agent. The agency theory deals with the agency clashes, between principals and agents (Bamberg & Spremann, 1987). This theory has certain attributes which includes: (1) ambiguity in routine conclusions, (2) unfavorable choice, and (3) nature of work performed (Bamberg & Spremann, 1987). Agency Costs of free-cash-flow occur between stockholders and managers’ conflict. These conflict arises where a firms with large cash flows than positive investment forecast. The attributes are: (1) agency costs of free cash flow’s reduction benefit in debts and (2) substitution of debt against dividends (Bowie & Freeman, 1992). Theory of Capital Structure provides the companies to organize their financial sources from internal to equity financing. Capital raising sources includes equity or debt, to equity is treated as less preferred means of raising capital. Firms usually, large firms raise their debts to support the dividend’s payment while small firms cut their debts to disburse dividend (Myers & Nicholas, 1984). â€Å"Economic Value Added Theory† (EVA) is a technique of financial performance to compute the profit of a firm. Coca-Cola and General Motors are good examples of this theory. The attributes of this theory includes: (1) maximization of the wealth of shareholders, and (2) investors expectation of company’s growth in future profits against the cost of capital (Hayne, 1998). â€Å"Weighted average cost of Capital is the rate of return, sometimes called discount rate† (Shankman, 1999). This applied in assessing weather the project is viable or not in the

Some suggest that politics has become a minor form of show business Essay

Some suggest that politics has become a minor form of show business. Do you agree with this Consider the media-ization of politics in your answer - Essay Example The leader of present times is one who is in the eyes and minds of the commoners, no matter he does some good for the society or otherwise. (Schapiro, 1950) What people want from the politics of today is sensation, however deep down inside they want true democracy for their own betterment but then again everyone loves to gossip and politics is the favorite amongst the lot. (Arthur, 2005) The role of media-ization within the political realm is something that must be judged in the proper light to start with. The citizens of the state must be apprised of their due role within the country and then they must also be told about the different aspects related with the spreading of message through the right channels. Politics must make citizens stand up and act. They should take notice of what is happening around them and what the different regimes and movements are doing for their own betterment. This means that awareness and a sense of knowing needs to be the buzzword when we explore the true meaning of politics and media the same gives the whole discussion a real boost in the related scheme of things. Political media-ization aims to look at the positive sides of delivering quality to the end consumers, for whom the politics is being done. The society is the eventual recipient hence it is the duty of the society to find out what is happening around it. (Newhagen, 1999) The people are a part of this society and they are rightly the winners and/or losers at the end of the day. They must be made aware of the happenings around them when it comes to true political movements, activities, situations and the like. The usage of banners, websites, rallies, advertorials, email and text messages, web portals, newspapers, magazines and even television and radio suggest that political media-ization could be a real happening thing in the times much like today. (Kelley, 1973) What also is suggested

The perception eassay Essay Example | Topics and Well Written Essays - 1250 words

The perception eassay - Essay Example Self-concept affects the formation of the style of behavior and human activity. In other words, it largely determines the dynamics and direction of development of the person. Psychologists study self-concept from different perspectives. Thus, the assessment of oneself as a whole as good or bad is considered to be general self-esteem, and the assessment of the achievements in selected activities is called private. It is essential that private evaluation may develop unevenly. Factors that affect the self-concept can be viewed from different perspectives, so-called the particular others and generalized others. In addition, we can divide it into actual (what has already been achieved) and potential (that one is capable for). It may be adequate, when the opinion of the person currently coincides with the fact that he really is. The person properly correlates his capabilities and skills; he is sufficient critical to himself, analyzing his failures and successes, trying to set goals that can be achieved in practice. Examining the progress he uses not only his own point of view, but also trying to predict how other people would react. In those cases when a person evaluates himself not objectively, when his opinion of himself differs from what is considered by others, self-concept is often inadequate, and is divided into overcharge and undercharge one. When self-concept is inadequate, a person has a misconception about himself, idealized image of his personality and capabilities, of his value in others` eyes. Based on the written above, I can describe my self-concept as adequate. Im not trying to please others too much, but at the same time I do not forget that my opinion is not considered as the only right. I can be described as a person, who understands what self-esteem feeling is. I know my rights as a human being, and do not

Aftermath of the 2007 financial crisis in UK Essay

Aftermath of the 2007 financial crisis in UK - Essay Example The UK government has embarked on a number of missions to sustain the financial sector and the overall economy. This paper will focus on the measures taken by the UK government in the aftermath of the 2007 financial crisis to deal with the effects of the external forces on business organizations. In modern times, has been identified that global financial system is an interdependent system between all the countries (Shiller, 2008, p.xi). The current global financial crisis has created instability of economic systems in most countries including UK to such an extent that the UK government has been compelled to intrude into the financial markets in an unprecedented manner. The financial crisis although has not created problems in the UK constitutional system, nevertheless has proved that the constitution lacks flexibility to cope with financial crisis of such mammoth proportions (Black, 2010, p.1). The crisis has shown that the government has to face legal barriers arising from various u nanticipated sources. The European Union (EU) has a rule imposed on state aid which gives more power to the EU Commission than the Westminster parliament to decide the fate of taxpayers’ money. Moreover, various corporate and financial norms restrict the management capacity of the UK government of investments in the banks (Black, 2010, p.2). UK has â€Å"globally very active financial services industry with cutting edge financial innovation† (Williams, 2011, p.41). Previously, the UK government had a â€Å"tripartite† regulatory system which allowed the Bank of England, the Financial Services Authority (FSA) and the Treasury to contribute towards maintaining economic progress in the country. However, the government felt that this system failed in three ways – a) it failed to assess any troubles that hinder economic progress, b) it could not assess appropriate steps to tackle such hindrances, and c) it failed to act effectively at the onset of the crisis ( Giudice et al., 2012, p.17). The effects of the global financial crisis first created waves in August 2007 and were enhanced throughout 2008. The impact of the crisis reached its peak in September/October 2008. Several financial institutes were rescued like the Northern Rock in UK. However, it was not before late 2008 that any major fiscal and monetary policies were established as response to the crisis. Most of the policies were put into practice only after the fall of Lehman Brothers in September 2008. Even in March 2008, the Treasury claimed that the government is duly abiding by all fiscal regulations and economy is stable. This indifferent perception was changed as a result of the events that occurred in September/October 2008. A reduction was made for a temporary period in VAT from 17.5 percent to 15 percent. In the end of 2009, it was brought back to the original rate. Moreover, the government made provision of ?3 billion for capital spending. In the beginning of the global c risis, the approximate valuation of public sector net borrowing (PSBR) was increased by 2.4 percent of GDP to 5.3 percent. Out of this, 0.6 percent was used for â€Å"discretionary budget changes† (Sawyer, 2011, p.206). In a wider context, the UK government has made plans and policies in response to the economic crisis with three main goals. First, the UK government has provided capital support to banks to reinforce their balance sheets. Secondly, the government has taken steps to enhance the competence of banks so that