Preparers’ and non-preparers’ lobbying on the proposed prohibition of goodwill amortisation in ED3 ‘business combinations’

In this paper preparers’ and non-preparers’ positions regarding accounting for goodwill are examined through studying submitted comment letters on ED3 ‘Business Combinations’. Preparers have, because of economic consequences, incentives to lobby for the non-amortisation approach and non-preparers for the amortisation approach. As hypothesised, non-preparers are found to support amortisation of goodwill to a greater extent than do preparers. Moreover, the two groups’ supportive arguments, i.e. how they argue for or against the non-amortisation or amortisation approach, are studied. Again, as hypothesised, the results show that the two groups use the same type of ‘sophisticated’ framework based arguments instead of economic consequences arguments. Taken together the examination of the comment letters thus indicates that both preparers and non-preparers point at conceptual strengths and weaknesses, instead of pointing at the real cause of the lobbying activities, i.e. perceived economic consequences, when they try to affect the final outcome of the standard. These findings confirm earlier research which has suggested that self-interested lobbyists use accounting theories and concepts as useful justifications.

Exploring the influence of context in a community-based facilitation intervention focusing on neonatal health and survival in Vietnam : a qualitative study

Background In the Neonatal health – Knowledge into Practice (NeoKIP) trial in Vietnam, local stakeholder groups, supported by trained laywomen acting as facilitators, promoted knowledge translation (KT) resulting in decreased neonatal mortality. In general, as well as in the community-based NeoKIP trial, there is a need to further understand how context influences KT interventions in low- and middle-income countries (LMICs). Thus, the objective of this study was to explore the influence of context on the facilitation process in the NeoKIP intervention. Methods A secondary content analysis was performed on 16 Focus Group Discussions with facilitators and participants of the stakeholder groups, applying an inductive approach to the content on context through naïve understanding and structured analysis. Results The three main-categories of context found to influence the facilitation process in the NeoKIP intervention were: (1) Support and collaboration of local authorities and other communal stakeholders; (2) Incentives to, and motivation of, participants; and (3) Low health care coverage and utilization. In particular, the role of local authorities in a KT intervention was recognized as important. Also, while project participants expected financial incentives, non-financial benefits such as individual learning were considered to balance the lack of reimbursement in the NeoKIP intervention. Further, project participants recognized the need to acknowledge the needs of disadvantaged groups. Conclusions This study provides insight for further understanding of the influence of contextual aspects to improve effects of a KT intervention in Vietnam. We suggest that future KT interventions should apply strategies to improve local authorities’ engagement, to identify and communicate non-financial incentives, and to make disadvantaged groups a priority. Further studies to evaluate the contextual aspects in KT interventions in LMICs are also needed.

Streetwise Asia, a practical guide for the conservation and revitalisation of heritage cities and towns in Asia.

This is a practical and accessible guide for residents and professionals concerned to preserve and revitalise heritage cities in Asia. Heritage cities (many listed by UNESCO) are of course of major interest to one of the world's largest industries, tourism. Using inset colour photographs to complement the text, the realities of destructive and constructive development, repairs, restoration and usage are made clear. Legal, financial, administrative, historical and educational aspects of conservation policies, incentives and implementations are discussed. With outlines for strategy, goals and bibliography.

The value of work in younger and older adults' lives: an Australian perspective

In the present study we examined the perceived role of work in the lives of younger and older adults in three different occupations: teaching, nursing, and small business. On the basis of lifespan developmental theory of changes in work-related values across the lifespan we expected that (1) older adults would rate their job satisfaction and organisational commitment more highly than younger adults, and (2) younger adults would rate the importance of work more highly than older workers. Based on utility theory we expected that nurses and teachers would view early retirement more positively than small business employees because of early retirement incentives in these two careers. One-hundred-sixty-two participants completed a 118-item survey. Overall few age differences were found between older and younger workers. On average, all participants rated work as moderately important and their job satisfaction as moderately high. Nonetheless, older participants rated their job satisfaction higher than younger participants. On average, all groups believed they would retire before 65 years of age. The latter finding is important for workability theory and raises issues about how to change attitudes, perceptions and values about working past traditional retirement ages.

The tax treatment of employee stock options : generous to a fault

In the 2000 budgets, both the federal and Ontario governments introduced changes to the tax treatment of employee stock options for the explicit purpose of making their tax treatment in Canada similar to or more favourable than that in the United States. The federal budget added a deferral, similar to that currently applicable to options granted by Canadian-controlled private corporations, for up to $100,000 per year of public company stock options. The Ontario budget introduced an exemption from tax for employees involved in research and development on the first $100,000 per year of employee benefits arising on the exercise of qualified stock options or on eligible capital gains arising from the sale of shares acquired by the exercise of eligible stock options. These proposals reflect the apparent acceptance by the two governments that there is a “brain drain” from Canada to the United States of knowledge workers in the “new” economy and that reductions in Canadian taxes should stem this drain. In the author’s view, the tax treatment of employee stock options, even without these changes, is overly generous. Both the federal and provincial proposals ignore the fact that most employee stock options are taxed more favourably in Canada than in the United States in any event. In particular, most employee stock option benefits in Canada are taxed at capital gains tax rates, whereas in the United States most are taxed at full rates. While the US Internal Revenue Code does provide capital gains tax treatment for certain employee stock option benefits, a number of preconditions must be met. Most important, the shares acquired pursuant to the options must be held for a minimum of one year after the option is exercised. In addition, there are monetary limits on the amount of options that qualify for capital gains treatment. In Canada, there are generally no holding period requirements or monetary limits that apply in order for the option holder to benefit from capital gains tax rates. Empirical evidence indicates that the vast majority of employees in the United States exercise their options and immediately sell the shares acquired. These “cashless exercises” do not benefit from capital gains treatment in the United States, whereas similar cashless exercises in Canada generally do. This empirical evidence suggests not only that the 2000 budget proposals are unwarranted, but also that the existing treatment of employee stock options in Canada is already more generous than that in the United States. This article begins with a theoretical “benchmark” for the taxation of employee stock options. The author suggests that employee stock options should be treated in the same manner as other income from employment. In theory, the value of the benefit should be included in income when the option is granted or vests. However, owing to the practical difficulty of valuing employee stock options, the theoretical benchmark proposed is that the value of the benefit (the difference between the fair market value of the shares acquired and the strike price under the option) be taxed when the shares are acquired, and the employer be entitled to a corresponding deduction. The employee stock option rules in Canada and the United States are then compared and contrasted with each other and the benchmark treatment. The article then examines the arguments that have been made for favourable treatment of employee stock options. Included in this critique is a review of the recent empirical work on the Canadian brain drain. Empirical studies suggest that the brain drain—if it exists at all—is small and that, despite what many newspapers and right-wing think-tanks would have us believe, lower taxes in the United States are not the cause. One study, concluding that taxes do have an effect on migration, suggests that even if Canada adopted a tax system identical to that in the United States, the brain drain would be reduced by a mere 10 percent. Indeed, even if Canada eliminated income tax altogether, it would not stop the brain drain. If governments here want to spend money in order to stem the brain drain, they should focus on other areas. For example, Canada produces fewer university graduates in the fields of mathematics, sciences, and engineering than any other G7 country except Italy. The short supply of university graduates in these fields, the apparent loss of top-calibre academics to US
universities, and the consequent lower levels of university research in these areas (an important spawning ground for new ideas in the “new” knowledge-based economy) suggest that Canada may be better served by devoting more resources to its university institutions, particularly in post-graduate programs, rather than continuing the current trend of budget cuts that universities have endured and may further endure if taxes are reduced.
As far as employee stock options are concerned, if Canada does want to look to the United States for guidance on tax reform (which it seems to do with increasing frequency of late), it should adopt the US rules applicable to nonstatutory options, which are close to the proposed benchmark treatment. In the absence of preferential tax treatment, employee stock options would still be included in compensation packages provided that there were sound business reasons for their use. No persuasive evidence has been put forward that the use of stock options, in the absence of tax incentives, is suboptimal. Indeed, the US experience suggests quite the opposite.

Investment opportunities and leverage: some Australian evidence on the role of board monitoring and director equity ownership

This paper tests the hypothesis that the negative relationship between investment opportunity set (IOS) and debt is moderated by board monitoring and director equity ownership. According to contracting theory, firms with high growth opportunities (high IOS) are associated with lower levels of debt as a result of the asset substitution and the under-investment problem. However, our hypotheses test the conjecture that the negative debt / IOS relationship will be moderated by the proportion of non-executive directors (NEDs) on the board and director equity ownership. NEDs provide higher monitoring which reduces management discretion while director equity ownership provides incentives for managers to maximize the value of the firm. More specifically, we expect that high growth firms with a higher proportion of non-executive directors and director equity ownership are less likely to be associated with asset substitution and under investment. Thus, the negative investment opportunity set / debt relationship will be weaker for firms with higher levels of non-executive directors and high director equity ownership. Data collected from Australian companies support both these two hypotheses. Results have significant implications for corporate finance theory.

Conservation and development interventions as networks: The case of the India ecodevelopment project, Karnataka

Experience with community-based biodiversity conservation programs in the 1980s and 1990s contributed to the conviction among donor agencies and researchers that such programs must be based on the active support of local resource users, appropriate incentives, and institutional support. Yet the continuing struggles of practitioners to implement conservation interventions that are socially and ecologically sustainable point to difficulty in realizing these principles on the ground. Actor-oriented research in rural development and actor network theory emphasize that the capacity of facilitators to engage effectively in negotiation processes and establish strong networks with key actors is critical in mediating intervention outcomes. Drawing on the case of the India Ecodevelopment Project at Rajiv Gandhi (Nagarahole) National Park in Karnataka, India, this paper explores the role of relationships and networks between actors in a conservation and development intervention, finding that practitioners need to focus on negotiation and network building as a central rather than subsidiary part of the intervention process. Associated with this is the need for change in the way donor and implementing agencies conduct themselves, to promote communication and greater flexibility in intervention processes.

Incentive or deterrent: which encourages greater focus on health and safety in the Victorian construction industry?

The Australian Government commissioned a Royal Commission into the building industry in Australia that reported to Parliament in August 2002. Volume 6 of this report, released in February 2003, discussed certain aspects in occupational health and safety in Australia and leaned toward deterrents as a means of achieving reform. This research defines both incentives and deterrents used to increase awareness of, and improve safety on, building sites in Victoria, a state of Australia. A pilot survey questionnaire was developed following a literature review and industry employer representatives were invited to participate. Industry awareness of Government incentive programmes was found to be low, with less than a quarter stating they read Government strategies. One fund that provides actual research monies into health and safety was known to very few of the respondents. Of the employers surveyed, the majority agreed that financial fines do act as a valid deterrent. Increases in worker compensation premiums were seen as the greatest deterrent due to the effect on company overheads and thus competitive tendering bids. Deterrent programmes were more readily acknowledged by employers as they had an element of self promotion with employers attempting to avoid their application.

Corruption in the media's gaze

This paper examines a government's incentive to engage in corruption in the presence of independent media. Different versions of a sequential-move game show how collusion between a media-firm and a government as well as a government's ability to ‘spin’ the media allegations can undermine corruption deterrence. Further, because of gains from exposing scandal, the media-firm can face incentives to raise false allegations. The paper shows how such false allegations can provide perverse incentives that favor corruption.

Non-uniform bird assemblages in urban environments : the influence of streetscape vegetation

The urban landscape encompasses a broad spectrum of variable environments ranging from remnant patches to highly modified streetscapes. Despite the expansion of urban environments, few studies have examined the influence of urbanization on faunal diversity, particularly in the Southern Hemisphere. In this study, four broad habitat types were recognized in the urban environment, representing a continuum of modification ranging from parks with remnant vegetation to streetscapes dominated by native vegetation and those dominated by exotic vegetation to recently developed streetscapes. Bird censuses were conducted at 36 sites throughout urban Melbourne, with nine sites surveyed in each habitat type. The four habitat types supported significantly different bird communities based on species richness, abundance and composition suggesting that bird assemblages of urban environments are non-uniform. Parks and native streetscapes generally supported fewer introduced species than exotic and recently developed streetscapes. Overall abundance and richness of species were lower in the exotic and recently developed streetscapes than in parks and native streetscapes. Significant differences were also observed in foraging guilds within the four habitat types, with parks having the most foraging guilds and recently developed streetscapes having the fewest. The transition from native to exotic streetscapes saw the progressive loss of insectivorous and nectarivorous species reflecting a reliance by these species on structurally diverse and/or native vegetation for both shelter and food resources. The implementation of effective strategies and incentives which encourage the planting of structurally diverse native vegetation in streetscapes and gardens should be paramount if avian biodiversity is to be retained and enhanced in urban environments. It is also critical to encourage the maintenance of the existing remnant vegetation in the urban environment.

Preparing pre-service teachers for rural teaching: a new approach

In Australia, recruitment of high quality teachers is seen as critical for the future of rural education provision. A national inquiry into rural and remote education conducted in 2000 by HREOC supported this claim stating that there is a crisis for rural schools attracting new teachers and blamed teacher education for not doing enough to equip beginning teachers with the skills and knowledge needed for teaching in rural and remote Australia. Although state governments provide financial incentives for potential graduates to embark on a rural practicum placement, this incentive does not appear sufficient. There is an urgent need in teacher education to consider  alternative ways to generate interest in a rural teaching career. This paper describes a pre-service initiative between the metropolitan Burwood campus of Deakin University and a Victorian rural school community. The initiative was designed to enable a cohort of 45 city-based student teachers studying a particular unit to better understand rural issues, pedagogy and ultimately to foster interest in country teaching.

Community valuations of historic pocket parks: a Melbourne study

The internal reserve, an historic form of planned open space creating semi-private parks at the rear of residential allotments and without street frontages, can be found in Australian suburban areas of diverse socio-economic status. Internal reserves commonly express the idealism of the early town planning movement, which envisaged the internal reserve as an embedded community-building mechanism with multiple potential uses. En vogue from 1910-1930, the internal reserve concept proved problematical from the outset. Even today, while many residents agree that their reserves are responsible for the special nature of their domestic environment, others are apprehensive about safety, maintenance and custodianship. Two surveys of residents living around internal reserves in four Melbourne suburbs, conducted in 1979 and 2002, reveal a variety of opinions on the potential and importance of these spaces. Local communities were found for the most part to have negative and ambiguous perceptions of these reserves. With one exception, residents did not value the parks highly as community spaces and alternative uses may need to be explored. The results suggest that a more innovative set of tools and incentives may be needed to reinvigorate the internal reserve as a significant recreation resource for local communities.

Land retirement: a biodiversity policy for the rangelands of Western N.S.W.

In this article we examine land retirement as a biodiversity policy option for the rangelands of Western NSW, a region seriously under-represented in biodiversity provision. We argue that the use of policies that rely on moral suasion, education and minimal costsharing will not yield the level of on-farm biodiversity provision demanded by society. Instead, a much greater commitment to the use of monetary incentives to induce the voluntary cooperation and production of biodiversity is required. The analysis explains the importance in policy design of determining transparent, meaningful and achievable objectives in delivering cost-effective environmental outcomes. We propose a land retirement
policy that rakes account of environmental, economic and political criteria. Finally, our land retirement proposal is supported quantitatively by benefit-cost analysis.

Reaching out to promote physical activity in Australia: a statewide randomized controlled trial of a stage-targeted intervention

Purpose. This study examined the broader use of a print-media intervention, which was previously shown to be effective at promoting physical activity to participants recruited from a regional Australian community, as a strategy suitable for a more diverse statewide population sample.
Methods. Participants were randomly selected adults who responded to a telephone interview conducted by the New South Wales Health Department and consented to Participate in a randomized controlled trial. Consenters were allocated to either intervention (n = 361) or control (n = 358) conditions. The intervention, a personalized letter plus stage-targeted booklets, was sent 1 week postbaseline. Data were collected via telephone interview at baseline and 2 and 8 months and were analyzed using repeated measures analysis of variance (ANOVA) and mean squared statistics.
Results. The groups were similar at baseline (mean age 43 +/- 3 years; 64 % women). Process evaluation showed high intervention recall (76 % at 2 months) and high follow-up response rates (> 85 % at 8 months) were achieved. Nonsignificant increases in physical activity were observed (Fl,719 = 2.18, p = .14).
Discussion. A single mailing of stage-targeted print materials was not effective in promoting increases in physical activity among participants selected from the statewide population. Future research could examine how the effectiveness of print media might be enhanced, possibly by using supplementary media, community-based prompts, or other incentives.

New money for mental health : will it make things better for rural and remote Australia?

New Australian government funding for the Better Outcomes in Mental Health Care initiative is a significant step forward for mental health, with general practitioners now able to offer direct referrals to psychologists, social workers, occupational therapists and Aboriginal health workers. Incentives for better teamwork between GPs and other mental health professionals have been introduced, but may have unintended consequences, including an exacerbation of workforce shortages in rural and remote areas. Possible solutions to these shortages include rural scholarships for students in the mental health professions; recruitment and retention of students coordinated by university departments of rural health; better access to continuing professional development; and federally funded rural positions and additional financial incentives for rural mental health practitioners.