Real Estate Accounting: New Regulations Essay -- The Financial Crisis

The level of agony for individuals and businesses continues to rise as they experience losses in the value of their real estate holdings. In some circumstances, the fair market value of their property has fallen below the loan or mortgage amount. As a result, many debtors decide to walk away from the loan, resulting in repossession of the property by the lender. As shown in Appendix A the default rates continue to rise (United States), affecting accounting issues such as, revenue recognition, measurement, fair value, and impairment. The reporting of long-term debt is one of the most controversial areas in financial reporting† (Kieso, 709). This is because long-term debt such as, loans for real estate investments, has a significant impact on a company’s cash flows. A company’s cash flows are affected by long-term debt as gains and losses are reported through an equity account, such as â€Å"Other Comprehensive Income† (Investments). Cash flows are also impacted by reporting the permanent impairment of an asset as a realized loss through earnings and regulatory capital. Individuals and institutions involved in the current credit crisis include: the United States Congress, the Federal Reserve Board, Fannie Mae, Freddie Mac, the Department of Housing and Urban Development (HUD), the Securities and Exchange Commission (SEC), credit agencies, banks, mortgage brokers and consumers (Carey, 2). The Financial Accounting Standards Board (FASB) is focusing on the uprising problems in dealing with the reporting of real estate holdings. Within the housing market, a home buyer (debtor) must go first to a financial institution or mortgage broker (originator) who will approve and make mortgage loans. Next, the originator may choose to s... ...d a company’s continuing involvement in transferred financial assets. Also, Statement 167 requires companies to provide additional disclosures concerning involvement interest entities, allowing significant changes in risk exposure to be reported. The new accounting rules will regulate the real estate market. However, the adjustments to business practices and the respected capital levels will prevail over time. The accounting issues resolving the real estate market will always exist. Accounting regulations are constantly updated to accommodate with the constant change in the economy. FASB along with the SEC will provide updated accounting rules that will affect the lender and the debtor. Whether the new regulations in accounting issues are treated fairly among all parties that are involved; they will have to be carried out in all interrelated transactions.

Neuropsychological Testing

Clinical neuropsychology is a field with historical origins in both psychology and neurology. The primary activity of neuropsychologists is assessment of brain functioning through structured and systematic behavioral observation. Neuropsychological tests are designed to examine a variety of cognitive abilities, including speed of information processing, attention, memory, language, and executive functions, which are necessary for goal-directed behavior.By testing a range of cognitive abilities and examining patterns of performance in different cognitive areas, neuropsychologists can make inferences about underlying brain function. Neuropsychological testing is an important component of the assessment and treatment of traumatic brain injury, dementia, neurological conditions, and psychiatric disorders. Neuropsychological testing is also an important tool for examining the effects of toxic substances and medical conditions on brain functioning.Before the introduction of neuroimaging te chniques like the computed tomography (CAT scan) and magnetic resonance imaging (MRI), the primary focus of neuropsychology was diagnosis. Since clinicians lacked non-surgical methods for directly observing brain lesions or structural abnormalities in living patients, neuropsychological testing was the only way to determine which part of the brain was affected in a given patient. Neuropsychological tests can identify syndromes associated with problems in a particular area of the brain.For instance, a patient who performs well on tests of attention, memory, and language, but poorly on tests that require visual spatial skills such as copying a complex geometric figure or making designs with colored blocks, may have dysfunction in the right parietal lobe, the region of the brain involved in complex processing of visual information. When a patient complains of problems with verbal communication after a stroke, separate tests that examine production and comprehension of language help neu ropsychologists identify the location of the stroke in the left hemisphere.Neuropsychological tests can also be used as screening tests to see if more extensive diagnostic evaluation is appropriate. Neuropsychological screening of elderly people complaining of memory problems can help identify those at risk for dementia versus that experiencing normal age-related memory loss. As neuropsychological testing came to play a less vital role in localization of brain dysfunction, clinical neuropsychologists found new uses for their skills and knowledge.By clarifying which cognitive abilities are impaired or preserved in patients with brain injury or illness, neuropsychologists can predict how well individuals will respond to different forms of treatment or rehabilitation. Although patterns of test scores illustrate profiles of cognitive strength and weakness, neuropsychologists can also learn a great deal about patients by observing how they approach a particular test. For example, two pat ients can complete a test in very different ways yet obtain similar scores.One patient may work slowly and methodically, making no errors, while another rushes through the test, making several errors but quickly correcting them. Some individuals persevere despite repeated failure on a series of test items, while others refuse to continue after a few failures. These differences might not be apparent in test scores, but can help clinicians choose among rehabilitation and treatment approaches. Performance on neuropsychological tests is usually evaluated through comparison to the average performance of large samples of normal individuals.Most tests include tables of these normal scores, often divided into groups based on demographic variables like age and education that appear to affect cognitive functioning. This allows individuals to be compared to appropriate peers. The typical neuropsychological examination evaluates sensation and perception, gross and fine motor skills, basic and c omplex attention, visual spatial skills, receptive and productive language abilities, recall and recognition memory, and executive functions such as cognitive flexibility and abstraction.Motivation and personality are often assessed as well, particularly when clients are seeking financial compensation for injuries, or cognitive complaints are not typical of the associated injury or illness. Some neuropsychologists prefer to use fixed test batteries like the Halstead-Reitan Battery or the Luria-Nebraska Battery for all patients. These batteries include tests of a wide range of cognitive functions, and those who advocate their use believe that all functions must be assessed in each patient in order to avoid diagnostic bias or failure to detect subtle problems.The more common approach today, however, is to use a flexible battery based on hypotheses generated through a clinical interview, observation of the patient, and review of medical records. While this approach is more prone to bia s, it has the advantage of preventing unnecessary testing. Since patients often find neuropsychological testing stressful and fatiguing, and these factors can negatively influence performance, advocates of the flexible battery approach argue that tailoring test batteries to particular patients can provide more accurate information.Lezak, Muriel Deutsh. Neuropsychological Assessment. 3rd edition. New York: Oxford University Press, 1995. Mitrushina, Maura N. , Kyle B. Boone, and Louis F. D'Elia. Handbook of Normative Data for Neuropsychological Assessment. New York: Oxford University Press, 1999. Spreen, Otfried and Esther Strauss. A Compendium of Neuropsychological Tests: Administration, Norms, and Commentary. 2nd Edition. New York: Oxford University Press, 1998. Walsh, Kevin and David Darby. Neuropsychology: A Clinical Approach. 4th edition. Edinburgh: Churchill Livingstone, 1999.

Descartes s Discourse On Method - 890 Words

In his Discourse on Method, Rene Descartes asserts that all human beings are equal in their ability to reason and that any differences in opinion are not a result of a difference in ability to reason, but in the application of the reasoning. Descartes begins his argument for this claim by stating that rational thought and reason is what separates humans from animals, and that if all people have this ability to reason, then that must be the distinguishing feature of humanity. He goes on to explain that while individuals may differ within a species in regard to their non-essential qualities, they will not differ in the species’ distinguishing feature. This rule accounts for the diversity within humanity as a species (such as differing hair colors, heights, and weights) while equalizing humanity’s ability to reason. From these premises, Descartes concludes that all humans must have an equal ability to reason and that differences in thought are merely a result of difference s in the application of the individual’s reasoning. In Part V of his Discourse, Descartes continues his argument for reasoning being the essence of humanity by arguing that non-human animals and machines cannot reason, and therefore reasoning must be solely attributed to humans. Descartes presents two tests to determine whether or not a being is human or non-human, both based on the adaptability of the being’s responses. He first asserts that since machines and non-human animals cannot communicate via spokenShow MoreRelatedAnalysis Of Rene Descartes s Work Discourse On The Method Of A Machine1316 Words   |  6 PagesThroughout his work Discourse on the Method, Rene Descartes discusses the things he believes to be true concerning thought. 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