The Characteristics Of Financial Statement Accounting Essay

The main purpose of this assignment is to determine the five types of accounting users, their needs for Continental Limited financial statement, prepared an income statement and balance sheet with necessary working for Continental Limited for year ending 31 Dec 2010 for the internal use, prepared the income statement and balance sheet of Continental Limited for year ending 31 Dec 2010 in accepted format for external reporting or publication and, an appropriate accounting ratios for year ending 31 Dec 2010 will be prepared base on income statement and balance sheet which done on task 2 and task 3. Last, industry averages provided to access profitability and liquidity of Continental Limited will be compared.

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Firstly, the accounting users can be categories into internal users and external users. Internal users includes of creditors, suppliers, investors, tax authorities, government agencies, customers, and financial analysts or adviser. Internal users are the users that inside or within an organization, it is usually includes of managers, employees, and shareholders. Next, the 5 characteristics of financial statement is comparability, reliability, timely, relevance, and accuracy.
Table of Content Pages
Introduction 3
Introduction to task 1 4
The 5 types of accounting users and their needs. 4-5
The 5Characteristics of Financial Statement 6-7
Conclusion for task 1 7
3.0 Introduction for task 2 8
3.1 The process of preparing income statement and balance sheet for 8-16
Continental Limited
3.2 Conclusion for task 2 16
4.0 Introduction to Task 3 17
4.1 Classify expenses into contribution cost and Administrative expenses. 17-20
4.2 Conclusion for task 3 20
5.0 Introduction for Task 4 21
5.1 Calculation of accounting ratio 22-23
5.2 Comparison between Continental Limited and Industry Averages to Assess 24
5.3 Comparison between Continental Limited and Industry Averages to Assess 25
5.4 Conclusion for task 4 26
6.0 Conclusion and recommendation 27
7.0 Reference 28-29
Accounting is a system where an organization uses to record all the business transaction. It can help organization to analysis their business performance or make any business decision. According to Michael Russell, he demonstrates that account is a recording of financial or money transactions.
In task 1, the five types of accounting users and their needs for Continental
Limited financial statement will be defined. Besides, the five regulatory characteristics of the financial statements that help to provide useful information to those accounting users will be explain too. Accounting users is the people who need accounting information to make decisions, invest, planning and budgeting.
In task 2, an income statement and balance sheet with necessary working for Continental Limited for year ending 31 Dec 2010 for the internal use by company directors and management will be prepared. Income statement can help organization to note down the expenses and profit and it usually prepared for 1 time in years.
In task 3, the income statement and balance sheet of Continental Limited for year ending 31 Dec 2010 in accepted format for external reporting or publication will be prepared. Which is means that after the income statement and balance sheet of Continental Limited prepared, it will be shown to the public or outsiders for external reporting.
In task 4, an appropriate accounting ratios for year ending 31 Dec 2010 will be prepared base on income statement and balance sheet which done on task 2 and task 3. Next, the industry averages provided to access profitability and liquidity of Continental Limited will be compared.
2.0 Introduction for Task 1
In task 1, 5 types of accounting users and their needs for the financial statement of Continental Limited will be discussed. Next, the 5 regulatory characteristics of these financial statements that will provide useful information to the users will also be defined in this task.
2.1 The 5 types of accounting users and their needs.
Users of accounting can be categories into external users and internal users. External users are the users outside of the organization which includes of creditors, suppliers, investors, tax authorities, government agencies, customers, and financial analysts or adviser. Internal users are the users that inside or within an organization, it is usually includes of managers, employees, and shareholders.
The first type of accounting users is managers of the company. Manager is a person who in charge in overseeing and manage all the activities of others working which includes of planning, organizing, leading and controlling. Accounting information is needed to a manager to know that whether the organization are earning or losing. Accounting information also helps managers in making business decision because it can let manager know that the current financial situation of an organization. Besides, it also helps managers to know how much their customers owe and how much they owe to their suppliers. Accounting information also helps managers in organization budgeting process by know the financial situation of the organization and allocate the money to each department wisely. Accounting information are important to managers to ensure their business are managed efficiently and effectively.
The second type of accounting users is suppliers or creditors. Suppliers are the person who provide or supply products or services and in return get an agreed payment. But usually suppliers didn’t have proper communication and less interact among each others. Suppliers need to know an organization accounting information to know the current financial situation of an organization whether the organization able to pay the debts that the organization owe. Supplier also includes of money lenders such as bank or landlord. So, if they want to lend money to the organization, they had to check the current financial situation to make sure they will be able to pay back in future.
The third type of accounting users is investors. The people who wish to invest to an organization with expectation to get back reasonable profit in return are known as investors. So, they need to know about the organization account information to measure the performance of the organization and see whether it is worth to invest or might bring loss to the investors
The forth type is the employees of the organization. Employees is the people who are recruit by the organization and use to provide products and services and get salary in return. They must know the account information of an organization to insure employee’s benefits or pension funding is able to pay to them. The fifth type is the shareholders or owners of the company. They are the boss of the company, so they were needed to know the performance of the organization and determine the future plan. Besides, they also need to know the accounting information to know how much they can withdraw as dividend payment.
So, these are the five types of accounting users that use financial information to fulfill their different types of needs.
2.2 The Characteristics of Financial Statement
Financial statement is a document that use to record down all the business transaction or the organization financial activities. Financial statement are includes of trial balance sheet and income statement.
The first characteristic of financial statement is relevance. Relevance is use to generate more information to helps all accounting users in decision making. It can help accounting users to predict future outcome such as profit or loss. To ensure the accounting information are accurate, so those financial account prepare based on accounting concepts and policies present must be relevant which is capable of influencing the economic decision of the users.
The second characteristic of financial statement is timely. Timely is referring to the information which is present or past. So that the accounting information that accounting users received are trustworthy and useful in helping them make any decision. If the account information not prepared to provide information in time, it will affect the decision making of accounting users which might cause loss.
The third characteristic of financial statement is accuracy. Accuracy is about how preciseness of the financial statement of an organization that provides many important information to all accounting users. If the financial statement are not accurate or made in past time, it may cause many problem to an organization in planning their future activities and affect the decision making of accounting users.
The next characteristic is reliability. Financial statement must be reliability to make sure that it can fulfill accounting user’s needs. A financial statement is reliability when it able to reflects the substance of transaction to present faithfully and truly what has already happened. Next is the financial statement are done free from bias and it is neutral. Last, the financial statement must in prudent and realistic where there is any uncertainty.
The last characteristic of financial statement is understandability. A financial account should be prepare in a condition which easy to understand by others that have knowledge or experiences in business, accounting and those economics activities.
So, these are the five characteristic of a financial statement that an organization should revise when preparing the company business financial accounts.
2.3Conclusion for task 1
In my conclusion, there are many types of accounting users that use account to fulfill their need. Their needs includes of making decision, invest, giving loan and know the situations of the organization. Besides, there are also 5 types of criteria of financial statement that an organization should revise when they preparing financial statement.
3.0 Introduction for task 2
In task 2, the income statement and the balance sheet of Continental Limited for the end of 31 December 2010 will be prepared. It will be prepared in an accepted format for the needs of external reporting and publication.
3.1 The process of preparing income statement and balance sheet for Continental Limited
(A)Closing stock should be recorded at cost or net resale value which one is lower. Since cost RM65000 (B)
Cash Account
Sales 5000 Purchase 4000
Stationery 700
Electricity 300
5000 5000
Sales in trading account of income statement
=RM360000 + RM5000=RM365000
Purchase in trading account of income statement
Stationery as expense put in profit loss account of income statement=RM700
Electricity & water in profit loss account of income statement= RM7000+RM300=RM7300
Sales commission as expense put in profit loss account of income statement
=RM18000 (paid from trial balance) +RM1500 (accrued at end of year) =RM19500
Then, the accrued sales commission RM1500 is recorded under current liability in balance sheet.
Office salaries as expense put in profit loss account if income statement.
=RM28000 (paid from trial balance) -RM2000 (prepaid at the end of year)=RM26000
Then, prepaid office salary RM2000 is recorded under the current asset in balance sheet.
Debtor Account
Balance B/D 75000 (-) Bad debts 5000
Balance C/D 70000
75000 75000
Balance B/D 70000
Bad debts account
Debtor 5000 P/L account 5000
Provision for bad debts closing balance =10% x Debtor closing balance RM70000= RM7000
Provision for bad debts account
31 Dec 2010 Closing Balance C/D 7000 1 Jan 2010 Opening Balance B/D 5000
Increase different 2000
7000 7000
1 Jan2011 Balance B/D 7000
Vehicles account
Balance B/D 300000 Vehicles disposal a/c 50000
Balance C/D 250000
300000 300000
Balance B/D 250000
Provision for depreciation on vehicle account
Vehicle disposal account 12500 1 Jan 2010 Opening Balance B/D 60000
31 Dec 2010 Balance C/D 60000 Depreciation as expense put in
P/L account 12500
72500 72500 1 Jan 2011 Balance B/D 60000
Vehicle disposal account
Vehicle cost sold 50000 Provision for depreciation on vehicle sold 12500
Proceed from disposal of vehicle 35000
Difference for loss on disposal of vehicle 2500
50000 50000
Provision for depreciation on premises account
Balance C/D 54000 1 Jan 2010 Opening Balance B/D 40000
Depreciation as expense put in P/L
account 14000
54000 54000
Balance B/D 54000
Taxation charge RM15300 is deducted from net profit at the bottom of income statement. It is also recorded as accrued taxation RM15300 under current liability in balance sheet.
Proposed dividend to be deducted from net profit at the bottom of income statement
=2% x RM500000 (share capital from trial balance) = RM10000
Then, the proposed dividend RM10000 is recorded under current liability in balance sheet.
Income statement of Continental Limited for year ending 31 Dec 2010 for internal use
Sales 365000
Less Return Inwards 10000
Net Sales 355000
Opening Stock 50000
+ Purchase 204000
– Return outwards 15000
+ Carriage inwards 5000 244000
Less Closing Stock 65000 179000
Gross Profit 176000
Add Income: 5000
Dividend received 181000
Less Expenses:
Stationery 700
Office electricity& water 7300
Office salaries 26000
Sales commission 19500
Bad Debts 5000
Increase in provision for bad debts 2000
Loss on disposal of vehicle 2500
Depreciation on vehicles 12500
Depreciation on premises 14000
Vehicle expenses 12000
Interest charge 3000 104500
Net profit 76500
Less Taxation charge 15300
Less proposed dividend 10000
Profit for the year 51200
Add Retained earnings brought forwards 100000
Retained earnings carried forward 151200
Balance Sheet of Continental Limited as at 31 Dec 2010 for internal use
Fixed assets/ Non-current assets RM RM
Office premises at cost 350000
(-) Provision for depreciation on premises (54000)
Vehicles at cost 29600
(-) Provision for depreciation on vehicles 250000
Long-term investments (60000)
Current assets 190000
Closing stock 65000
Trade debtors 70000
-Provision for bad debts (7000)
Bank 42000
Prepaid office salary 2000_
Issues share capital
Share capital 500000
Add Reserve
Retained earnings carried forward 151200
Shareholders’ equity 651200
Add Long-term liabilities/ Non-current liabilities
Loan 55000
Add Current Liabilities
Creditors 25000
Accrued sales commission 1500
Accrued Taxation 15300
Proposed dividend 10000 51800
Conclusion for task 2
In my conclusion, income statement and balance sheet of an organization is very important to know that organization are now in profit or loss.
4.0 Introduction for task 3
In task 3, the income statement and balance sheet of Continental Limited for year ending 31 Dec 2010 in accepted format for external reporting or publication will be prepared. Which is means that after the income statement and balance sheet of Continental Limited prepared, it will be shown to the public or outsiders for external reporting.
4.1 Classify expenses into contribution cost and Administrative expenses.
Distribution costs Administrative expenses
Stationery – 700
Office electricity & water – 7300
Office salaries – 26000
Sales commission 19500 –
Bad debts 5000 –
Increase in provision for bad debts 2000 –
Loss on disposal of vehicle 2500 –
Depreciation on vehicles 12500 –
Depreciation on premises 14000
Vehicles expenses 12000 –
Total 53500 48000
Income statement of Continental Limited for year ending 31 Dec 2010 for external reporting
Turnover 355000
Cost of sales 179000
Gross profit 176000
Distribution costs 53500
Administrative expenses 48000
Operating profit 74500
Dividend received 5000
Interest charges 3000
Profit on ordinary activities before taxation 76500
Taxation charge 15300
Profit on ordinary activities after taxation of the year 61200
Proposed dividend 10000
Retain profit for the year 51200
Retained profit brought forward 100000
Retained profit carried forward 151200
Balance sheet of Continental Limited for the year ending 31 Dec 2010 for external reporting
Fixed Assets RM RM RM
Tangible assets:
Premises 296000
Vehicles 190000
Long term investment 100000
Current Assets
Stock 65000
Debtors 63000
Prepaid office salary 2000
Cash at bank 42000
Less Creditors: Amount Falling Due
Within One Year
Creditor 25000
Accrued sales commission 1500
Accrued taxation 15300
Proposed dividend 10000
Net current assets 120200
Total Assets Less current Liabilities 706200
Less Creditors: Amount Falling Due After More
Than One Year
Loan (55000)
Capital and Reserves
Called up share capital 500000
Profit and loss account 151200
3.2 Conclusion for task 3
In my conclusion, income statement and balance sheet for external reporting or publication must be prepared neatly and precisely. Because it might affect the image and the business of the organization,
Introduction for task 4
Accounting ratio is one of the ways to define the relationship among result and the others, such as balance sheet, and profit loss account. Accounting ratio can use to measure the efficiency, effectiveness and profitability of the organization according to its financial reports.
5.1 Calculation of accounting ratio
The table below is the calculation of the accounting ratio between Continental Limited and the industry averages for year ending 31 Dec 2010.
Ratio with formula Ratio calculation Industry
for year 2010 averages
Percentage of gross profit on sales 17600 x 100 30%
= Gross profit x 100 355000
Net sales = 49.58%
Percentage on operating profit on sales 74500 x 100 18%
= Operating profit x 100 355000
Net sales = 20.99%
Return on capital employed 9%
= Net profit before interest x 100 (76500 + 3000) x 100
and taxation 158000-51800
Total assets-current liability =11.26%
Current ratio 2:1
= Current assets 172000
Current liabilities 51800
= 3.32 : 1
Stock turnover period 90 days
= 365 days 365 days/3.11 times
Stock turnover in
Times = 117.36 days
Stock turnover = Cost of sales
Average stock value
Average stock = (Opening stock value + Closing stock value) / 2
= (50000 + 65000) /2
= 57500
Stock turnover = 179000
=3.11 Times
Debtor collection period 0.177 x 365 days 45days
= Debtor ratio x 365 days = 64.6 days
Debtor ratio = Debtor
Net credit sales
= 63000
= 0.177 : 1
Creditor payments period 0.132 x 365 days 60 days
= Creditor ratio x 365 days = 48.18 days
Creditor ratio = Creditor
Net credit purchase
= 25000
=0.132 : 1
Comparison between Continental Limited and Industry Averages to Assess Profitability
According to the table above, it has state that the gross profit margin of Continental Limited is 49.58% while the gross profit margin of industry average is 30%. In this situation, when the gross profit margin are higher, it means that the organization are controlling their purchasing cost effective and efficient Besides, it also show that the organization perform good in allocating their raw materials and labor force to helps in reduce production cost and increase their gross profit.
Next, the operating profit margin of Continental Limited ratio calculation for year 2010 is 20.99% while the industry average is 18%. When the operating profit margin is high, its means that the organization profits are still high even finish paying those variables cost. Operating profit margin can show whether an organization are effectively in their expenses and variable cost.
Lastly, the return on capital employed (ROCE) of Continental Limited in 2010 is 11.26% while it is 9% in industry average. ROCE are usually used to measure all the resources that available in the organization and demonstrate the efficiency and revenue of an organization. So, when the percentage of ROCE becomes higher, the performances of the organization are better. The percentages of Continental Limited is higher than the industry average,
Comparison between Continental Limited and Industry Averages to Assess Liquidity
According to the table above, it has show that the current ratio of Continental Limited is 3.32:1 and the current ratio of industry average is 2:1. Current ratio is use to measure the financial status and the ability of the organization in using their current assets to finance its current liabilities. In this situation, it shows that the finance of the organization is stable and did not face any short-term financial problems.
Secondly, is the stock turnover period of Continental Limited which is 117.36 days and the industry average is about 90 days. Stock turnover period is the time that the goods keep before purchased by customers. In this situation, Continental Limited had longer stock turnover period compare to the industry average, it might cause short-term financial problem because of keeping stock for long time and slowly taken out for resale.
Next is the debtor collection period. The debtor collection period of Continental Limited is 64.6 days and 45 days for industry average. Based on this period we can know that Continental Limited is taking longer time than industry average to collect debts from the debtors. It might cause organization having shortage of pay back those liabilities and face short-term finance problem.
In last, the creditor payment period of Continental Limited is 48.18 days and the industry average is 60days. Which shows that Continental Limited has the shorter time to pay the creditors compare to industry average and it might cause lack of many to pay back the creditors
Conclusion for task 4
In my conclusion, accounting ratio can enable an organization or accounting users understand the liquidity and profitability of an organization. So, it make easier when an organization plan for future of budgeting.
6.0 Conclusion and Recommendation
In my conclusion, this assignment enables me to understand the usefulness and the function of the account which can helps to know well an organization easily. In task 1, the most common accounting users are defined and let me understand of the 5 basic characteristics of financial statement. So, it helps a lot in preparing an organization financial statement.
While in task 2, it let me know that income statement and balance sheet of an organization is very important to know that organization are now in profit or loss. It also let me let the proper way in preparing balance sheet and income statement for an organization.
In task 3, income statement and balance sheet for external reporting or publication must be prepared neatly and precisely. Because it might affect the image and the business of the organization,
In task 4, accounting ratio can enable an organization or accounting users understand the liquidity and profitability of an organization. So, it make easier when an organization plan for future of budgeting.

Characteristics And Features Of Capital Markets Finance Essay

Capital market in any country consists of equity and the debt markets. Within the debt market there are govt securities and the corporate bond market. For developing countries, a liquid corporate bond market can play a critical role in supporting economic development as
It supplements the banking system to meet corporate sector’ requirements for long-term capital investment and asset creation.
It provides a stable source of finance when the equity market is volatile.
A well structures corporate bond market can have implications on monetary policy of a country as bond markets can provide relevant information about risks to price stability
Despite rapidly transforming financial sector and a fast growing economy India’s corporate bond market remains underdeveloped. It is still dominated by the plain vanilla bank loans and govt securities. The dominance of equities and banking system can be gauged from the fact that since 1996, India’s stock market capitalisation as a percentage of GDP has increased to 108% from 32.1%, while the banking sector’s ratio to GDP has risen from 46.3% to 78.2% in 2008. In contrast, the bond markets grew to a modest 43.4 percent of GDP from 21.3 percent. Of this corporate bonds account for around 3.2% of GDP and government bond market accounts for 38.3% of GDP. (Graph1)
Source: RBI
India’s government bond market stands ahead of most East-Asian emerging markets but most of it is used as a source of financing the deficit. The size of the Indian corporate debt market is very small in comparison with not only developed markets, but also some of the emerging market economies in Asia such as Malaysia, Thailand and China (Graph 2)
Graph 2
Source: RBI
Characteristics and features
Innovation and a Plethora of options:
Over time great innovations have been witnessed in the corporate bond issuances, like floating rate instruments, convertible bonds, callable (put-able) bonds, zero coupon bonds and step-redemption bonds. This has brought a variety that caters to a wider customer base and helps them maintain strike a risk-return balance.
Preference for private placement:
In India, issuers tend to prefer Private Placement over public issue as against USA where majority of corporate bonds are publically issued.
In India while private placement grew 6.23 times to Rs. 62461.80 crores in 2000-01 since 1995-96, the corresponding increase in public issues of debt has been merely 40.95 percent from the 1995-96 levels. (graph 3).This leads to a crunch in market liquidity. A number of factors are responsible for such preference. First, the companies can avoid the lengthy issuance procedure for public issues. Second is the low cost of private placement. Third, the amounts that can be raised through private placements are typically larger. Fourth, the structure of debt can be negotiated according to the needs of the issuer. Finally, a corporate can expect to raise debt from the market at finer rates than the PLR of banks and financial institutions only with an AAA rated paper. This limits the number of entities that would find it profitable to enter the market directly. Even though the listing of privately placed bonds has been made mandatory, a proper screening mechanism is missing to take care of the quality and transparency issues of private placement deals.
Graph 3: Resource mobilization through debt
Source: Equity and corporate debt report: RBI
Graph 4
Source: RBI
Dominance of financial institutions:
The public issues market has over the years been dominated by financial institutions. The issuers who are the main participants in other corporate bond markets (that is, private sector, non-financial), represent only a small proportion of the corporate debt issues in the Indian market. Most of the privately placed bonds (which are about 90% of the total issue of corporate bonds) are issued by the financial and the public sector. (Graph 4)
Inefficient secondary market:
Further the secondary market for non-sovereign debt, especially corporate paper still remains plagued by inefficiencies. The primary problem is the total lack of market making in these securities, which consequently leads to poor liquidity. The biggest investors in this segment of the market, namely LIC, UTI prefer to hold these instruments to maturity, thereby holding the supply of paper in the market.
The listed corporate bonds also trade on the Wholesale Debt Segment of NSE. But the percentage of the bonds trading on the exchange is small. Number of trades in debt compared to equity on average for August 2007 is just 0.003%.
Graph 5
Figures are turnover on the wholesale debt market segment of NSE.
Source: NSE
Challenges and issues
Dominance of private placements
Dominance of large corporations. The credit rating system encourages only the large corporations with an AAA rating. (Table 1)
Non-existent repo market for corporate bonds unlike the government bonds where there is an active repo market.
Complicated and slow issuance procedure.
Regulators in India are reactive rather than proactive.
Illiquid secondary market- part of it is due to the fact that the number of issuers is low and part of it is due to the fact that the large investors prefer to hold these securities till maturity.
Lack of formal market makers
Limited demand for bond financing. The corporate debt market in India continues to be dominated by banks
Limited investor base. A successful corporate bond market requires non banking investors which are limited and restricted in case of India.
Inadequate credit assessment skills coupled with lack of transparency in trades
There is a lot of confusion in the market regarding both regulations and the trading floors.
To sum up, corporate bond the market in India suffers from deficiencies of participants, products and a comprehensive institutional framework.
Table 1: Distribution of corporate bond issues by credit ratings
Recent developments
Given the importance of a well developed corporate bond market, the government, the RBI and SEBI have initiated measure to develop the corporate bond market in India. Most measures were aimed at improving the disclosure norms. The corporate bond market got its due attention by the government in the Union Budget of 2004-05where in the High
Level Expert Committee on Corporate Bonds and
Securitisation, chaired by Dr. R. H. Patil, was set up to look into the regulatory, legal, tax and mortgage design issues for the development of the corporate bond markets. The suggestions made by the committee were to develop the market infrastructure. Some of the suggestions made in the report include the removing the stamp duty, simplifying the issuance and disclosure norms, to bring the cost of corporate bonds at par with those of government securities by having similar TDS norms, enhance the investor base by encouraging participation of mutual funds, pension funds, insurance companies and gratuity funds and also retail participation through better primary and secondary markets. It also suggested a regulatory framework for a transparent and efficient secondary market for corporate bonds should be put in place by SEBI in a phased manner. It also recommended having a trade reporting system, introduction of repo in corporate bonds and better clearing and settlement system.
Both RBI and SEBI have fundamentally agreed to these recommendations and steps are being taken to implement the same. Some of the steps include:
Dematerialization of holdings, as required by SEBI since 2002; increased trading transparency from compulsory reporting of trades, linking local rating agencies to international rating agencies. In January 2007 SEBI was declared as the sole body responsible for regulating and coordinating the primary and secondary corporate bond market. It was a major step in remove the lack of coordination that existed due to two regulators (SEBI and RBI). In April 2007, SEBI permitted both BSE and NSE to set up trading platforms. In April 2007, SEBI reduced the shut period in corporate bonds, to align it with that applicable for Government Securities, and tradable lots in corporate bonds. In December 2007 SEBI made further amendments in issuance procedures to reduce the cost and ease issuance. It also gave green signal to FMMIDA to start trade reporting platform for CBs. Moreover, the government has made changes in the Companies Act and on simplification and reduction in the stamp duty w.e.f. 2007. From December 1, 2009 all corporate bonds traded OTC or on the debt segment of the stock exchanges will have to be cleared and settled through the National Securities Clearing Corporation Ltd (NSCCL) or the Indian Clearing Corporation Ltd (ICCL). It will help in eliminating the counter party risk in trade settlement and ensure a smooth receipt and payment system. In June 2008, the investment limit for FIIs in corporate debt was increased from $1.5 billion to $3 billion and further to $15 billion in January 2009. Ministry of Finance has hinted towards corporate market becoming Repo-able from 2010.
Asia Bond Monitor- ADB, April 2008
India’s Bond Market-Development and Challenges Ahead, Stephen Wells and Lotte Schou-Zibell, Working paper series on regional economic integration no.22, ADB, December 2008.
CS Update, august 2008, ICSI
Equity and corporate debt report 2007, RBI

Rhyniophytes Seedless Vascular Plants Characteristics

Rhyniophytes are a group of fossil plants, which compose the first land flora, These seedless vascular plants that developed during the early Devonian period and during the Paleozic era, occurred in the Rhynie Chert deposit. Some signs of this appeared as early as in the Silurian period as well. The first land flora is a clasificationof three extinct earlyvascular plant groups (the Rhyniophytes, the Zosterophyllophytes and the Trimerophytes), that flourished around 425to370million years ago. Despite the fact that these were very simple plants containing no seeds, flowers, and were even leafless, they bear a very striking resemblance to the plants we see today. The vascular tissue was comprised of a protostele or of one vascular bundle. A number of unicellular organisms were preserved in this location, such as fungi primitive plants and arthropods, leading researchers to believe that conditions were perfect for the process. The Rhyniophyta are notorious thanks to the prominent fossil record held in the village of Rhynie, Aberdeenshire, Scotland. Rhynia, one of the most notable plant groups, are primarily characterized by their moderately small structure and dichotomous branches, with various lateral branches, most of which was common in all three groups with minor differences in size and location of sporangia. In the Rhynia, the sporangia were located mainly at the top of the main branches, but were usually overtaken by the growth of lateral branches. The sporangia present in the fossils found, contain enough cellular detail to tell which plants are the sporophyte generation. Significant unique features, like reproductive structures, can be seen connected to their parent plants, thanks to the fact the plants were buried in-situ. Fossils also showed first indication of wounding by insects in the form of penetrating wounds, likely by arthropods. Another important characteristic to take note of is homospory, each plant having the same size spores. This gives researchers more information into the kind of ecosystems these early plants evolved.

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During the second land flora or the coal age in specific regions of the globe, such as North America and Europe, were covered by shallow seas and swamps where favorable conditions yielded year-round growth with a tropical climate. Given these conditions five groups of plants thrived during this period, three of which were seedless vascular plants ferns, lycophytes, and equisetophytes. The other two dominante plants were of the gymnospermous type, the seed fern and the cordaites. These more complex groups dated from the late Devonian (375 million years ago) through the Carboniferous (290 million years ago). During the carboniferous period plants such as these grow high it the sky producing forests, but became extinct due to a time of increasing tropical drought during the Late Paleozoic. Leaving behind only a few relatives such as the herbaceous, several groups of ferns, and the conifers; some of these plants such as the fern and the herbaceous still exist today. The plants of this period were classified by having more modern characteristics, things like pseudomonopodial branching, monopodial branching, microphyllous leaves, and sporophylls leaf that covered the sporangia. Even ferns, had developed megaphyllous leaves and eusteles.
The third flora more commonly known as the gymnosperm flora signifies a sequence of evolutionary lines of seed baring plants. Late into the Paleozoic era the progymnosperms existed, which is considered to be the intermediate between the seedless vascular plants and the gymnosperns that predominantly characterize the later period. The progymnosperms carried some of the traits for their predecessors as well as their successors, with the production of secondary xylem similar to living conifers and reproducing by means of freely dispersed spores, but most importantly the presence of a bifacial vascular cambrium. Progymnosperms became extinct around 340 million years ago in the Mississippian period. Evidence suggests that seed plants developed from similar plants such as these. Gymnosperm, which means naked seed, is a broad expressive term for plants like conifers, which have seeds that are borne naked, the primary characteristic of the classification. They are pollinated by wind. It was the global climate change that brought an end to the Carboniferous Period and the succeeding growth of the third major land flora, set apart by forests of gymnosperms. The extinct gymnosperms existed from Devonian period up until the Jurassic and range from a number of groups and characteristics. The Ptericdospermales or seed ferns and Cordaitles varied in form, from plants that looked like tree ferns to smaller slender branch plants. There are also a number of extinct Mesozic plants that are included with the gymnosperms on occasion, with seed ferns as well as a series of other Carboniferous and Devonian seed ferns being inclded. There is also some debate as to the lineage of the Bennettitales, which was an enigmatic group of Mesozoic gymnosperms characterized by its palm like leaves that faded out during the Cretaceous period.
The four phyla of gymnosperms that came about still have existing representatives, which including the Coniferophyta, Cycadophyta, Gnetophyta and Ginkgophyta. The relationship between the four groups is still uncertain. Gymnosperm forests grew dominate for almost 150 million years, well into the Cretaceous Period where they began to diminish in size, around 145 million years ago. They became overshadowed by the flowering plants that emerged and ultimately rose to dominance around 90 million years ago. What resemble modern day cycads and cycadeoids first emerged at the end of the Paleozoic Era, approximately 290 million years ago and became plentiful in the Mesozoic Era, characterized by the dominate trait of the period the cone. Cycadeoids fell to extinct before the end of the Cretaceous period, but conifers being the most abundant group of gymnosperms, still live on today with around 7 families and ap 600 species. Conifer is a woody plant and most are evergreens. The leaves of conifer are long, thin and needle-like such as pine. Ginkgophyta is a monotypic phylum that lives on through one species, Ginkgo biloba or more commonly known as Ginkgo, which has spanned over 150 million years. It has reproductive qualities like the cycads and vegetative qualities much like the conifers. Gnetophytes are considered to be the closest existing relations to the flowering plant, dating back all the way to the early Cretaceous.
Angiosperm, which literally means covered seed, is a broad expressive term for flowering plants whose ovules or seed are covered by the ovary. The angiosperms comprise only a single phylum, while gymnosperms consist of several phyla. The phylum consists of two major classes, Monocotyledones and the Eudicotyledones as well as a much less sophisticated and primitive group called Magnoliids, all of which encompass approximately 235,000 different species of plants. Flowering plants started to appear during the Cretaceous period, about 125 million years ago. They are considered to be the most successful vascular plants to evolve, since they are the largest, most widespread, and diverse. Some of the possible causes for the flowering plants success include a range of adaptations for drought confrontation, together with the development of the deciduous habit, as well as, possibly the most important, the evolution of resourceful and specific systems for pollination and seed distribution. The first recognized flowering plant was the Archaefructus, which was only recently discovered. It has many of the major characteristics of angiosperms including slight roots, floral axes with sealed carpels on top as well as sealed stamens at the bottom, and bisected leaves,
Angiosperms major characteristics consist of the most concentrated megagametophytes and microgametophytes of the vascular plants, fruits, flowers, ovules with two integuments, and “double fertilization”. Vessel elements are present in flowering plants xylem and in their phloem there are sieve tube elements. Some plants like the primitive class mentioned earlier lack these cell types. Sporophylls are leaves that folded to enclose the sporangia, which was most likely a defense mechanism to protect the reproductive materials. Different sporophylls undertake different jobs, while some produced male sporangia which became the stamens, others produced the female reproductive structure or pistil and some that don’t produce reproductive sporophylls became the petals and sepals. The anther, which are the folded sporophyll that are positioned at the tip of the stalk or filament, are the location of the male sporangia. In the sporangium, spores are formed which divide almost instantaneously to generate gametophytes. Once mature, the anthers open to discharge the mature male gametophytes or pollen grains. The pollen grain is carried by wind or by animal to the female gametophyte. When the male gametophytes find a well-matched stigma, a pollen tube develops to reach the female gametophytes, through the pistil and into the carpel. Flowering plants rely predominantly on insects for pollen transfer. Insects get a sweet nectar reward and as flowering plants discharge odors to draw bees, beetles, butterflies, and wasps to their blossoms. Other larger pollinators include bats, mothhawks, and hummingbirds. There has been a co-evolution of flowering plants and their pollinators as modifications of plants and pollinators have been a key factor in the success of the flowering plant, which can be seen with an look at the flowering plant visitors.

The Objective Of Financial Reporting And Qualitative Characteristics And Constraints Accounting Essay

1 Introduction
The U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), namely the Boards, jointly published a Discussion Paper and received 179 responses. The Exposure Draft was created from the Boards’ redeliberations regarding issues being raised by respondents. The Boards published this common Exposure Draft for the public to comment and it is the Board’s broader conceptual framework.

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The Boards are considering their frameworks: to provide standards that are consistent, converge their standards, to develop a general and enhanced conceptual framework. The Boards decided that a reconsideration of concepts would not be efficient because many aspects of the frameworks are consistent and do not need fundamental revision. The Boards are focused on improving and converging their existing frameworks.
The conceptual framework for financial reporting established by the Board displays the concepts that underlie financial reporting. This conceptual framework consists of 2 chapters: the objective of financial reporting and qualitative characteristics and constraints of decision – useful financial reporting information – useful financial reporting information.
2 Chapter 1: The Objective of Financial Reporting
This conceptual framework establishes the objective of general purpose financial reporting by business entities in the private sector, which is the foundation of the framework. The objective of general purpose financial reporting is to provide financial information to current capital provides to make decisions. This information might also be useful to users who are not capital providers.
The general purpose financial reporting develops superior reporting standards to help in the efficient functioning of economies and the efficient allocation of resources in capital markets. General purpose financial reporting focuses on an extensive range of users’ needs that lack the ability to obtain financial information needed from the entity. It should be broad enough to comprehend information for the various users. Therefore, the financial report is where they depend on to acquire information. Diverse users may require different information which might go beyond the scope of general purpose financial reporting.
The financial reports are prepared from the entity’s perspective (deemed to have substance on its own, spate from that of its owners), instead of the entity’s capital providers. An entity attains economic resources (its assets) from capital providers in exchange for claims to those resources (its liabilities and equity). Capital providers include
Equity investors
Equity investors normally invest economic resources in an entity expecting to receive a return on, as well as a return of, the resources invested in. Hence, equity investors are concerned with the amount, timing, uncertainty of an entity’s future cash flows and the entity’s competence in generating those cash flows which affects the prices of their equity interests. Furthermore, they are concerned with the performance of directors and management of the entity in discharging their responsibility to make efficient and profitable use of the assets invested.
Lenders usually expect to receive a return in the form of interest, repayments of borrowings, and increases in the prices of debt securities. Lenders have similar interests as the equity investors.
Other creditors
Other creditors provide resources because of their relationship with the entity, instead of a capital provider; no primary relationship.
Employee – salary or compensation
Suppliers – extended credit
Customer – prepay for goods and services
Managers – responsible for preparing financial reports
Capital providers make decisions through useful information provided in financial reporting by particular entity. Financial reporting usefulness in assessing cash flow prospects depends on the entity’s current cash resources and the ability to generate sufficient cash to reimburse its capital providers. Besides, financial reporting usefulness in assessing stewardship includes the management’s responsibilities to protect the entity’s economic resources (assets) from unfavourable effects. Management is also liable for safeguarding the assets of the entity which conforms to the laws, regulations and contractual provisions; thus, the importance of management’s performance in the decision usefulness.
The general purpose financial reporting is limited to information which does not reflect pertinent information from other sources that should be considered by the users. Financial reporting information is based on estimates, judgements, and models of the financial effects on an entity of transactions and other events in which, is only ideal for preparers and standard setters to strive. Achieving the framework’s vision of ideal financial reporting to the fullest will be difficult in the short term because of technical infeasibility and cost constrains.
Financial reporting should include information about: the economic resources of an entity (assets), the claims of the entity are (liabilities and equity), the effects of transaction and any events or circumstances that can affect the entity’s resources and claims and provide useful information about the ability of entity to generate its cash flow and how well the entity meets its management responsibilities.
The usefulness of financial reporting to the users:
Provide useful information about the amount, timing, and uncertainty of future cash flow
To identify the entity’s financial strengths and weaknesses (especially for capital providers)
To indicate the potential of entity’s cash flow for its economic resources and claims
To identify the effectiveness of the entity’s management responsibilities
To assess availabilities of the entity’s nature and quantity of the resources for the use in its operation
To estimate the values of the entity.
The quantitative measures and other information regarding the changes in entity’s economics resources and claims in the financial report can help the users to assess the amount, timing, and uncertainty of its cash flow; and indicate the effectiveness of management responsibilities.
Furthermore, the entity must provide a positive return on its economic resources in order to generate net cash inflows; and return the earning to its investors. Other information like variability of returns, past financial performance, and management’s ability can be used to assess the entity’s future financial performance.
The information regarding the accrual accounting in financial reporting can better provide the users to assess the entity’s past financial performance and future prospects in generating net cash inflows without obtaining additional capital from its investors.
The entity’s cash flow performance in financial reporting assist the investors to understand the entity’s business model and operation through assessing how the entity obtains and spends cash. Information about its borrowing, repayment of borrowing, cash dividends and other distribution to investors, as well as the factors of entity’s liquidity and solvency, can also assist the investors to determine the entity’s cash flow accounting.
Besides, information about the changes of entity’s resources and claims not resulting from financial performance may assist the investors to differentiate the changes that are results of the entity’s financial performance and those that are not.
The information of management explanation should be included in financial reporting to assist users for a better understanding about management decision in any events and circumstances that have affected or may affect the entity’s financial performance. It is because the internal parties know about the entity’s performance than the external users.
3 Chapter 2: “Qualitative Characteristics and Constraints of Decision-Useful Financial Reporting Information”
Fundamental qualitative characteristics distinguish useful financial reporting information from information that is not useful or is misleading. For information to be useful, it must have two fundamental qualitative characteristics:
Relevance – capable of making a difference in the decisions made by users as capital providers. Information is relevant when it has predictive value, confirmatory value, or both.
Predictive value – information that is assists the capitals providers to form their own expectations about the future.
Confirmatory value – information that confirms or changes past or present expectations based on previous evaluations.
IASB said that information is relevant “when it influences the economic decisions of users by helping them evaluate past, present or future events or confirming, or correcting, their past evaluation.” FASB believes that to be relevant, “accounting information must be capable of making a difference in a decision by helping users to form predictions about the outcome of past, present, and future events or to confirm or correct expectations.” Since some users may have been obtaining information elsewhere other than financial reporting, and emphasizes the relevance of information in their decisions, relevant information does not really make a difference in the past or in the future. Any information that might be able to make a difference is said to be relevant.
Faithful representation – depiction of an economic phenomenon is complete, neutral, and free from material error.
Complete – includes all information that is necessary for faithful representation of economic phenomena.
Neutrality – information which is bias free.
Freedom from error – estimation of the economic phenomena is based on the appropriate inputs and each input must reflect the best available information.
Relevance is concern with the connection between economic phenomena with the decisions of capital providers and not their depictions, therefore should be consider first. Then, the faithful representation is applied to determine which depictions of economic phenomenon best corresponds to the relevant phenomenon.
Enhancing qualitative characteristics improves the decision usefulness of financial reporting information that is relevant and faithfully represented. They are used to distinguish more-useful information from less-useful information. The enhancing qualitative characteristics are comparability, verifiability, timeliness, and understandability.
Comparability is the quality of information that enables users to identify similarities and the differences between two sets of economic phenomena. Since the essence of decision making is to select between alternatives, the information is more useful if it can be compared with similar information about the other entities and with similar information about the same entity for some other period. Comparability should not be confused with uniformity. Overemphasizing on uniformity may reduce comparability by making unlike things look alike.
The IASB Framework actually discusses comparability as a qualitative characteristic which is equally important as relevance and faithfully representation. However, FASB concludes that comparability is an enhancing qualitative characteristic because regardless of how comparable the information may be, it will not be useful if it is irrelevant to users’ decisions and does not faithfully represent the economic phenomena.
A quality of information that helps to assure users that information faithfully represents the economic phenomena that it purports to represent. If the information is verifiable, the knowledgeable and independent observers could come to the general consensus. The verifiability of the information focuses on whether the recognition or measurement method is correctly applied. Verification can either be direct or indirect. An amount or other representation itself verified such as by counting cash or observing marketable securities and their quoted prices are called direct verification. An example of verifying the carrying amount of inventory by checking the inputs (quantities and costs) and recalculating the ending inventory using the same cost flow assumption (accounting convention or methodology – average cost and first-in, first-out) is indirect verification.
IASB Framework does not include verifiability as an explicit aspect, yet FASB does. FASB observed that some of the information which is faithfully represented may not necessarily be verifiable. Therefore, if the information is verifiable, it is generally more useful. Thus, FASB concluded that verifiability is an enhancing qualitative characteristic.
Timeliness means having information available to decision makers before it loses its capacity to influence decisions. A lack of timeliness can rob information of its potential usefulness. The IASB Framework discusses timeliness separately, as a constraint that could rob information of relevance. However, FASB concluded that reporting information in a timely manner can enhance both the relevance and faithful representation of the information since information can be reported in a timely manner but has no relevance, or information delayed in reporting remains its relevance.
Understandability is the quality of information that enables users to comprehend its meaning. When the information is classified, characterized, and presented clearly and concisely, the understandability will be enhanced. Although the reporting information has to be understandable, the users of the financial report should also review and analyze the information with reasonable diligence as the users are assumed to have a reasonable knowledge of business and economic activities and to be able to read the financial report.
Enhancing qualitative characteristics should improve the usefulness of financial information and should be maximized to the extent possible. However, if the information is irrelevant or not faithfully represented, the enhancing qualitative characteristics cannot make that information useful for decision. Besides, the application of the enhancing qualitative characteristics is an iterative process which does not follow the prescribed order.
In addition, FASB considered whether some other qualitative characteristics should be added, such as transparency, true and fair view, credibility, internal consistency, and high quality. FASB concluded that it would be redundant if transparency is added as one of the qualitative characteristics. True and fair view is not a qualitative characteristic itself, but it should result from applying the qualitative characteristics. FASB concluded that it should be the goal to achieve high quality to which financial reporting and standard setters aspire. By adherence to the objective and qualitative characteristics of financial reporting information, the goal can be achieved. Therefore, the characteristics mentioned in not added as the qualitative characteristics of the financial reporting information.
In a nutshell, the qualitative characteristics of financial reporting information in this draft can be categorized into fundamental qualitative characteristics and enhancing qualitative characteristics as shown in the following:
Figure 1
Compared to the conceptual framework issued by the Malaysian Accounting Standard Board (MASB) in 2007, most of the qualitative characteristics are identical to the characteristic discussed in this draft. However, the most distinctive aspect which can be found is MASB did not categorize the qualitative characteristics into fundamental and enhancing qualitative characteristics. The qualitative characteristics concluded by MASB are shown in the figure below.
Figure 2
MASB concluded that the relevance of information is affected by its nature and materiality while FASB discusses materiality under the constraints of financial reporting. MASB provides that the economic decisions of users taken on the basis of the financial statements could be influenced when the omission or misstatement of the information is material. Thus, materiality provides a threshold or cut-off point rather than being a primary qualitative characteristic which information must have for it to be useful.
Besides, MASB also discussed about substance over form and prudence under the characteristic of reliability. MASB provides that if information is to represent faithfully the transactions and other events that it purports to represent, it is necessary that they are accounted for and presented in accordance with their substance and economic reality and not merely their legal form. However, FASB did not identify substance over form as a component of faithful representation as it would be redundant to do so. In addition, FASB did not conclude prudence as a qualitative characteristic because it might conflict with the quality of neutrality.
MASB discussed the characteristic of timeliness as a constraint on relevant and reliable information. If there is undue delay in the reporting of information it may lose its relevance. Management may need to balance the relative merits of timely reporting and the provision of reliable information. However, FASB concluded timeliness as an enhancing qualitative characteristic of the financial reporting information.
There should be a balance between the qualitative characteristic as the IASB Framework says: “In practice a balancing, or trade-off, between qualitative characteristics is often necessary. Generally the aim is to achieve an appropriate balance among the characteristics in order to meet the objective of financial statements. The relative importance of the characteristics in different cases is a matter of professional judgments.”
The information provided by financial reporting is limited by materiality and the cost of providing.
Materiality depends on the nature and amount of the item judged in the particular circumstance of its omission or misstatement. It is important to consider the materiality of information because material omissions or misstatements will cause information to contain error, making it biased and incomplete. However, it is hard to specify a uniform quantitative threshold at which the information is material.
Concepts Statement 2 and IASB Framework define materiality similarly but discuss materiality it differently. IASB describes materiality as an aspect of relevance and does not indicate that it has a relationship to other qualitative characteristics. On the other hand, Concepts Statement 2 provides that materiality should be considered together with qualitative characteristics (not only relevance). Thus, the Boards conclude that materiality is pertinent to all of the other qualitative characteristics.
The Boards emphasized the balance between the benefits of financial reporting information and the cost of providing and using it.
Costs of providing information:
Cost of collecting and processing
Cost of verifying
Cost of disseminating
Cost of analysis and interpretation
Cost resulted from omission of decision-useful information
Benefits of financial reporting information:
More efficient functioning of capital market
Lower cost of capital
Improved access to capital market
Favourable effect on public relations
Better management decisions
However, the major problem for the standard setters in conducting rigorous cost-benefit analyses is the difficulty in qualifying the benefits of a certain reporting requirement. Besides, it is also difficult to obtain complete, quantitative information about the initial and ongoing cost of a requirement and impose them. Nevertheless, standard seekers should take into account both benefits and costs of proposed financial reporting requirements.
There are 3 constraints of financial reporting information mentioned by the MASB:
Balance between benefit and cost
As mentioned in FASB, cost is one of the constraints of financial reporting information and the Boards emphasizes on the balance between the benefits of financial reporting information and the cost of providing and using it.
Balance between qualitative characteristic
MASB provides that, “In practice a balancing or trade-off, between qualitative characteristics is often necessary. The relative importance of the characteristics in different cases is a matter of professional judgments”. The FASB also mentions, “In assessing whether the benefits of reporting information are likely to justify the costs, it is necessary to consider whether one or more qualitative characteristics might be scarified to some degree to reduce cost”.
MASB mentioned that a constraint which is not mentioned in the conceptual framework of FASB; timeliness. MASB provides that if there is undue delay in the reporting of information it may lose its relevance. To provide information on a timely basis it may often be necessary to report before all aspects of a transaction or other event are known. On the other hand, if reporting is delayed until all aspects are known, the information may be highly reliable but of little use to users who have had to make decisions in the interim. Management may need to balance the timely reporting and the provision of reliable information.

Characteristics of Population Composition

Population Composition
The term “Population Composition” actually refers to the characteristics of the particular group of people. The composition or characteristics of the population can be represented in many different ways. These characteristics include the distribution of the population across the number of men relative to the number of women and also across age structure of society. Indeed, Age and Sex composition of population are considered as most important aspects of the population composition. The data on the population by Age and Sex is of great importance for the health administrators and demographers for the planning of various developmental projects and initiating health programs. Basically, the classification of the Urban/Rural, sex and marital status with respect to age expose the basic characteristics of the population and also provides us with the disaggregated data for the target based groups. Actually, these characteristics create a profile of the population and also the very attributes that in real sense give population its particular character. [1]
There are many different types of population composition and it is broadly divided into three different types

Biological Composition
Cultural Composition
Economic Composition[2]

Biological Composition:
The biological characteristics of the population include the Racial and ethnic composition of population, age composition of population and sex composition of population.

Racial and Ethnic composition

Indeed, the populations of all the nations of the world are diverse with respect to race and ethnicity. The population of the country may also consist of many different races and communities. These divisions in the populations are regarded as very important socially and therefore statistics by ethnic group and race are easily available. In this world the concept of the pure races is totally impractical for the population of the earth which is essentially one of mixtures. Although, there is no hard and fast rule through which we can distinguish between the races of the world. Though, the anthropologist believes that there are three primary races exist in this world Caucasoid, Negroids and Mongoloids. The Caucasoid (White People) are the most abundant and also widespread over the surface of the earth. They are more than half of the population of the world and this race consists of Europeans Semites, Hamites and the Indo-Iranians. The Indo-Iranians (300-400 million Population) can be found in the Northern and Eastern parts of South West Asia and also in the central parts of India. The Hamites and Semites (80 million populations) can also be found in the North-Eastern and Northern Africa. The Negroid are mostly found in the African region and the Asiatic black people are centered in Southern part of India and in some parts of South-East Asia. The Mongoloid (One Billion Population) have yellow and brown skin color centered in Central and East Asia, Indonesia and in Malaya. The blend of the American Indian, Negro and the white people has produced a mixed population in Latin America. I would say that till now the exact number of races is not known and it is also very difficult to know the exact number.
Presently, we do not have decisive classification of the population of the world on the basis of communities and races. The physical feature that is used as to differentiate various ethnic groups and races is not a good criterion for judging the cultural traits of the people and basically these qualities of different races of the world are not functional in the perspective of nature. Likewise, we also divide the world into parts one part consist of Developed or Highly Developed nations and the other part consist of Less developed or Under-Developed Nations. The people who are living in the LDS’s mostly posses pigmented skins but they are not inferior in the quality in any way. Basically, the division is only on the basis of country economic conditions not on the basis of cultural retardation of any group of the world/society. The categories that we use for these groups because they differ from nation to nation for example a Pakistan citizen or a person of Pakistani origin will be regarded as black or dark colored and will be considered as Asian or white in the United States of America. That’s why at the international level the comparison of these Racial and Ethnic groups is totally vague and that’s why this component of the population structure is regarded as of less importance as compared to the others.

Age Composition of Population

Conceivably, the most fundamental among the characteristics of population is the age composition of Population. Commonly, demographers use the population pyramids in order to explain the age distribution of the population. A population pyramid is described as a bar chat in which the length of each of the horizontal bar tell us about the exact number of people in that particular age group. This composition includes the persons of various ages. Actually, the age composition is very important for understanding the concept of the Mortality and fertility of a society. The age differences between the different age groups may also create economic and social differences. The age composition of population is also commonly known as age structure or age distribution. I would say that one could not even proceed further in the study of the population growth without understanding the age structure of the population. The age affects all the aspects of any individual life like its community life, economic activities and the social attitudes. The age structure of population greatly influences the Socio-Economic life of the nation. The data on the age is very useful for those who are mainly responsible for different type of welfare activities. We also require the age data for various numbers of economic and social activities of life including marriage, employment and retirement. The age structure of the population also helps us to know about the percentage of the Labor force in the population and on the other hand it is also very useful in finding out the dependency load/ration. The production and consumption is also dependent upon the data of age structure. If we want to understand and predict the future growth rate of the population then for this purpose we have to understand the age structure of the population. So, on the basis of the age structure we can tell that whether the country has regressive or progressive type of population. The problem with the data of age structure is that most of the time the data which is available is not authentic and for the geographers it is very difficult to map the age statistics. Not all the countries conduct regularly the censuses so that’s why in such countries accurate and up-to date data regarding the population is not available. Basically, the age structure of the population is determined by the three important factors Fertility, Mortality and Migration. The fertility rate tells us about the population percentage in each of the age group. The countries with the high fertility rates have large proportion of their population the group of young people (0-15 years). In less developed states the life expectancy rate is also very low and in the old age group we have extremely small population and the population is heavily influenced by the young age group. Whereas, on the other hand the developed countries are experiencing low fertility rates have small number of people in the old age group. Migration is also sex and age selective. In general, it is said that the working age group (15-45 years) are much mobile as compared to the people in young and old age group. People keep on migrating from one place to another the age structure of population of any country changes with respect to time. The natural calamities also influenced the age structure and sometimes cause drastic changes in it. The data available on the age groups can also be analyzed by the age pyramids and the age indices.[3]

Sex Composition of Population

All the communities of the world have different sex composition of male and female. The population geographers show keen interest in the sex composition. The sex ratio of male and female is a key factor behind the socio-economic condition of an area. This characteristic of the population composition is widely used at the regional level by the geographers. The composition has a deep impact on the demographic structure of the region and also an important feature of a countryside area. We can determine the sex ratio from three basic factors

Sex Ratio at Births
Sex Ratio at Deaths
Sex Ratio due to Migration

Sex Ratio is defined as the number of females per thousand males and number of males per thousand females. Sex ratio may be different in different regions just as in Pakistan sex ratio is High (Women’s are more). The Primary Sex Ratio is described as the sex ratio at the time of just conception, Secondary Sex Ratio is calculated at the time of the birth and the Tertiary Sex Ratio is calculated at the time of enumeration. The balance between the male and female is very important aspect of the population composition and structure. The sex ratio is greatly influenced by the birth, death and the migration rate. Other than these the natural disasters like war, famine and earthquake. The sex ratio is also dependent upon the status of the women in the society and the enumeration of both sexes. Physically and biologically females are much stronger than the males that’s why in the life females live longer than males. If we talk globally, the mortality rate of males is higher than the mortality rate of females. Basically the infant mortality rate of males is higher than the females but the sex ratio became balanced at the age of 4. After the age of 4 again the imbalance started at reaching at the age of 95 we have 1000 males per 2000 females. So I would say that in the less developed countries the female mortality rate is higher than the male mortality rate as compared to the developed countries. It is a natural fact that males are born more as compared to the females but for sure that does not mean that the natural sex ratio is same across the globe. As we know that Pakistan is a Muslim country and we have high male birth rate as compared to the females because the status of the females is very low in here. Then if we talk about the migration factor then it is more sex selective naturally. It is also a fact that the long distances migrations involves males whereas the short distances migration involves females. Marriages play very important role in bringing changes in the sex ratio because after marriages females should have to go to their new homes. Other then these particular factors the sex ratio is also get influenced by many other situations and conditions. This includes famine, war and the natural calamities. Here, in the end I just want to mention the WW1 & WW2 that those countries that have been the part of those wars have more proportion of females as compared to the males.[4]
Cultural Characteristics of Population

Religion is a very important feature of the population and play very pivotal role in the life of every human being. As always the religion of the population acts as a motivating force for them. In the past many wars have been fought on religious basis in Europe and Israel. Now days the religious force or religious impact is reduced but still I can say that the religious force is very significant force. If we just take the example of the partition of the Sub-Continent into two newly states India and Pakistan that partition was also based on religious basis. Muslims got the separate homeland where Muslims live according to the teachings of Islam. I should say that the religion has great contribution in the well being and welfare of the human beings. All the Religions of the world have left certain marks on the customs, Food habits, literature and the architecture. The imprint left by the religions is still stronger in those states where the religion has been combined with the state power. In the past the religion acts as unifying as well as troublesome. In the war of hatred the Nazis of Germany persecuted Six million Jews just on the base of the religion. According to the geographers it is very difficult to map the religion and the world pattern of religion is also very difficult to analyze.
The Christianity, Hinduism, Islam and Buddhism are the world greatest religion so the Christianity is dominant religion in the western hemisphere and in the European countries. Buddhism is dominant in the East Asia, Hinduism in the South Asia. In the world we have approximately 320,000,000 Muslims 380,000,000 Hindus and 660,000,000 Buddhist.

Language has a very strong relation with the nationality and we can say that the language is also part of ethnicity. Presently, thousand of different languages are spoken across the world. A single language in a state reflects the unity and solidity. It also strengthens the concept of patriotism and nationalism. If we talk about our country we are also linguistically divided into different linguistic portions. Mostly, the developed countries have the have internal linguistic homogeneity. I would say that the national language of the powerful nations with large colonial influence became the international languages. The less developed states are more linguistically diverse and that diversity is more found in the some parts of Asia and Africa. I believe that many different languages in the country create language diversity in unity which may be serving as bottle neck in the development of the country.

Among the other characteristics of the population composition education is the most important one which is also regarded as the backbone of the progress of any state. Basically, Education gives us the power to distinguish between the good and Bad. The more we will invest in the sector of the education the more economic growth will be better. The more a nation will be literate the more it will play pivotal role in the national stream of progress. By the literacy rate we can easily measure the educational status of any person. In the third world states the level of education is very low as compared to the educational level in the Developed states that’s why many students are moving to the developed states for enjoying better quality educational facilities. Education play important role in shaping down the society in different number of ways. We need to spent more and more in educational sector and the LDC develop slowly due to not spending much in the educational sector. We need to bring reforms in the educational system of the developing countries only in that case it will contribute ion the development of the country.[5]

DR Chandra, R.C. Geography of population 2009. 8th edition. Kalyani Publishers, New Delhi India.
Prof Qazi, S.A, Navid Shabir Qazi. Population Geography. APH Publishers. New Delhi India.
Bergman, Edward. F, Renwick, William. H. Introduction to Geography: People, Places and Environment. 3rd Edition. India. Pearson education, India ISBN 0131445456


Teitelbaum, Michael S. Encyclopedia Britannica. Population. Last Updated on 6 April, 2013. Data Assessed on 23 March, 2014.>
Gjerso, F. The civilizing Mission. Demographic composition and economic development. Published on 6 January, 2011. Assessed on 23 March, 2014.>
Population reference Bureau. Age and sex composition. Sixth edition. Published on 4 April, 2011. Assessed on 23 March, 2013.>
Population Composition: Trends and Environmental implications. Accessed on 23 March, 2014.>
Population Composition. Assessed on 23 March, 2014.>
Population distribution and Composition. Assessed on 23 March, 2014.>
Riyaza, Fathmath. Age and Sex composition of Population. Assessed on 23 March, 2013.>

[1] Population Composition. Assessed on 23 March, 2014.>
[2] Prof Qazi, S.A, Navid Shabir Qazi. Population Geography. APH Publishers. New Delhi India.
[3] Population reference Bureau. Age and sex composition. Sixth edition. Published on 4 April, 2011. Assessed on 23 March, 2013.>
[4] Riyaza, Fathmath. Age and Sex composition of Population. Assessed on 23 March, 2013.>
[5] Prof Qazi, S.A, Navid Shabir Qazi. Population Geography. APH Publishers. New Delhi India.

The Characteristics of Retroviruses

Retroviruses have various characteristics that make them unique as gene delivery vehicles. Their life cycle includes an integrated state in the DNA of the host chromosome.
Retroviruses are the only animal viruses that integrate into the host cell’s genome during the normal growth cycle. They use an integrase that acts in a site-specific manner to join the ends of the viral cDNA to target sequences in host cell DNA. The linear ds cDNA made in the cytoplasm is transported to the nucleus where it is also found as circles and as integrated DNA. Two forms of circular DNA are generally found: one having a single Long Terminal Repeat (LTR) and one having two LTRs. It is now thought that the original integrated proviruses were linear molecules with two LTRs.
The retroviral promoter can direct high-level, efficient expression of genes encoded within the viral capsid of its genome using chromatin.
The retroviral genomes can accommodate changes to its configuration.
Retroviruses offer gene therapy researchers aid for delivering genes to target cells at high efficiency that allows for long-term, stable expression of introduced genetic elements
The retroviral life cycle begins in the nucleus of an infected cell.
At the beginning of the life cycle the retroviral genome is a DNA element integrated into and covalently attached to the DNA of the host cell.
Full-length genomic mRNA is made starting at the beginning of the repeat at the 5′ LTR (Long Terminal Repeat).
The free particle can infect new cells by binding to a cell surface receptor. The specificity of the virus-cell interaction is determined most commonly by the envelope proteins of the retrovirus. Infection leads to injection of the virus nucleoprotein core (consisting of many gag-derived proteins, full-length genomic RNA, and the reverse transcriptase protein).
Once inside the cell, the nucleoprotein complex accesses intracellular DNA nucleotide triphosphate pools, where the reverse transcriptase protein initiates and creation of a double-stranded DNA copy of the genome of the virus is prepared for integration into the host cell chromosome. When reverse transcription is completed, the viral enzyme integrase looks for an appropriate storage place for the DNA, which the integrase clips the host DNA to and binds the double-stranded DNA into the host DNA.
The virus is the able to initiate a new round of replication again.
3 major proteins encoded in a retroviral genome

Gag is a polyprotein and is an acronym for Group Antigens (ag).
Pol is the reverse transcriptase.
Env is the envelope protein.

The group antigens form the viral core structure and are the major proteins which comprise the nucleoprotein core particles.
Reverse transcriptase is the essential enzyme that carries out the reverse transcription process that take the RNA genome to a double-stranded DNA preintegrate form. General transcription and proteins are encoded from spliced mRNA of retroviruses.
Transcription proceeds through the genome and mRNA is polyadenylated and processed using signals in transcribed regions from the 3′ LTR at the end of the transcribed R (repeat). The full-length message can be spliced to lead to production of envelope proteins (or other proteins depending upon retroviral class). Unspliced full-length mRNA can give rise to gag-pol proteins. Gag and Pol are made as either Gag protein or a Gag-Pol precursor.
Translated proteins assemble a retroviral particle at the cell surface. Full-length genomic unspliced mRNA is bound by gag-derived proteins and incorporated into the budding particle.
Virion structures – In retroviruses particle shapes can be divided into distinct categories:
A-type particles are immature intracellular forms derived from endogenous retrovirus-like elements and the immature form of MMTV.
B-type particles correspond to the extracellular form of MMTV and are characterised by prominent surface protein “spikes” and a dense asentric nucleocapsid.
C-type particles form at the surface of the cell at the site of budding. Lentiviruses bud like C type particles but have a distinctive blunted cone shaped core.
D-type particles are the MMPV related viruses of sub-human primates, and differ from B-type particles by a lack of surface spikes.
The gag (group specific antigen) gene encodes the viral matrix, capsid and nucleoproteins
The protease encodes a product that cleaves the gag polyprotein precursor. It can be encoded as part of Gag or a Gag-Pro-Pol polyprotein
The major read-through product is derived from the pol gene which encodes the reverse transcriptase and an integrase which is involved in provirus integration.
The envelope gene encodes the surface glycoprotein (SU) – transmembrane (TM) polyprotein.
Viral entry
Retroviruses enter by at least two different manners, dependent upon the retroviral subclass. The viral envelope is critical in each case for recognising appropriate surface receptors to initiate viral fusion to the host target cells.
The RNA genome in the free retrovirus is arranged as a diploid genome with identical sequences. The mRNA associates with a tRNA primer (pro, trp, or lys) that is bound by complementary base pairing to 18 base pairs to the U5 region.
The integrated form (proviral) of all retroviruses contain transcription regulatory sequences primarily in Long Terminal Repeats (LTR). LTR sequences are derived from sequences unique to the 5′ end of viral RNA (U5), from sequences unique to the 3′ end of viral RNA (U3), and from sequences repeated at both ends of the viral RNA. The integrated provirus is larger than the viral genome but its complexity is the same because of duplication of U3 and U5 during synthesis.
Replication of retroviruses is sensitive to the transcription inhibitors Actinomycin D, alpha-amanitin nucleoside and analogues like 5-bromodioxyuridine and cytosine arabinoside. 5 bromodioxyuridine and cytosine arabinoside are thought to inhibit DNA replication.

Conceptual Art Movement Characteristics

Conceptual art is based on the concept that art may exist solely as an idea and not in the physical realm. For supporters of this movement, the idea of a work matters more than its physical identity. While having its roots in the European Dada movement of the early 20th century and from the writings of philosopher Ludwig Wittgenstein, conceptual art emerged as a recognised art movement by the 1960s. When the expression “concept art” was coined in 1961 by Henry Flynt in a Fluxus publication, it was also adapted by Joseph Kosuth and the Art and Language group (Terry Atkinson, David Bainbridge, Michael Baldwin, Harold Hurrell, Ian Burn, Mel Ramsden, Philip Pilkington, and David Rushton) in England, in which the term took on a different meaning. This group saw conceptual art as a reaction against formalism and commodification and believed that art was created when the analysis of an art object succeeded the object itself and saw artistic knowledge as equal to artistic production. The term gained public recognition in 1967, after journalist Sol LeWitt used it to define that specific art movement. Conceptual artists began the theory by stating that the knowledge and thought gained in artistic production was more important than the finished product. Conceptual art then became an international movement, spreading from North America and Western Europe to South America, Eastern Europe, Russia, China, and Japan. All these movements came to a major turning point in 20th century art, when the theory that ‘art is idea’ was reaching a summit debate, challenging notions about art, society, politics, and the media with the theory that art is ideas. Specifically, it was argued that this form of art can be written, published, performed, fabricated, or simply an idea.

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By the mid 1970s many publications about the new art trend were being written and a loose collection of related practices began to emerge. In 1970, the first exhibition exclusively devoted to Conceptual Art took place at the New York Cultural Centre. It was called “Conceptual Art and Conceptual Aspects”. Eventually the term “conceptual art” came to encapsulate all forms of contemporary art that did not utilize the traditional skills of painting and sculpture.
Conceptual art also had roots in the works of the father of Dadaism, Marcel Duchamp, the creator of the “ready-made.” Duchamp had a key influence on the conceptualists for the way he provided examples of artworks in which the concept takes precedence. For example, Duchamp’s most famous work, Fountain (1917) shows a urinal basin signed by the artist under the pseudonym “R.Mutt”. When it was submitted to the annual exhibition of the Society of Independent Artists in New York it was rejected under the argument that traditional qualities of art making were not being reflected. It was a commonplace object and therefore exceedingly ordinary and not unique. Duchamp’s focus on the concept of his art work was later defended by the American artist Joseph Kosuth in his 1969 essay “Art after Philosophy” when he wrote “All art (after Duchamp) is conceptual (in nature) because art only exists conceptually.”
Between 1967 and 1978 Conceptual art rose to its golden age, enabling distinguished conceptualists such as Henry Flynt, Ray Johnson, Robert Morris and Dan Graham to emerge on the art scene. During the influential period of conceptual art, other conceptualists such as Michael Asher, Allan Bridge, Mark Divo, Jenny Holzer, Yves Klein and Yoko Ono also established names for themselves.
Conceptual art was intended to convey a concept to the viewer, rejecting the importance of the creator or a talent in the traditional art forms such as painting and sculpture. Works were strongly based on text, which was used just as much if not more often than imagined. Not only had the movement challenged the importance of art traditions and discredited the significance of the materials and finished product, it also brought up the question at the nature of the art form – whether art works were also meant to be proactive. Conceptual art was the forerunner for installation, digital, and performance art, more generally art that can be experienced.
“In conceptual art the idea or concept is the most important aspect of the work. When an artist uses a conceptual form of art, it means that all of the planning and decisions are made beforehand and the execution is a perfunctory affair. The idea becomes a machine that makes the art.” – Sol Lewitt, Paragraphs on Conceptual Art (1967)
Conceptual art is art formed by ideas. It is a form of modern art of which the idea or ideas that a work conveys are considered its crucial point, with its visual appearance being of minor importance. As Sol Lewitt says, “What the work of art looks isn’t too important. …No matter what form it finally have it must begin with an idea. It is the process of conception and realization with which the artist is concerned.” – Sol Lewitt Paragraphs on Conceptual Art (1967)
Conceptual art challenges the validity of traditional art, the existing structures for making, publicizing and viewing art. Moreover it claims that the materials used and the product of the process is unnecessary. As the idea or ideas are of major significance, conceptual art consists of information, including perhaps photographs, written texts or displayed objects. It has come to include all art forms outside traditional painting or sculpture, such as installation art, video art and performance art. Because the work does not follow a traditional form it demands a more active response from the viewer “is made to engage the mind of the viewer rather than his eye or emotions.”, in other words it
Marcel Duchamp Fountain 1917
could be argued that the Conceptual work of art in fact only exists in the viewer’s mental participation. “It doesn’t really matter if the viewer understands the concepts of the artist by seeing the art. Once out of his hand the artist has no control over the way a viewer will perceive the work. Different people will understand the same thing in a different way.” – Sol Lewitt, Paragraphs on Conceptual Art (1967)
Conceptual artists deliberately produced works that were difficult if not impossible to classify according to the old traditional format. Some consciously produced work that could not be placed in a museum or gallery, or perhaps resulted in no actual art object which hence emphasize that the idea is more important than the artifact. “Conceptual art is not necessarily logical. …The ideas need not be complex. Most ideas that are successful are ludicrously simple. Successful ideas generally have the appearance of simplicity because they seem inevitable. In terms of idea the artist is free to even surprise himself. Ideas are discovered by intuition. .” – Sol Lewitt, Paragraphs on Conceptual Art (1967)
Echoing the difficulty in classification as mentioned above, conceptual art cannot be defined in terms of any medium or style. Rather, it can be defined in the way it questions what art truly is, a piece of conceptual art is recognized in one of the four forms: a readymade, a term devised by Duchamp through his piece Fountain. (photo)
Joseph Kosuth’s One and Three Chairs 1965
Traditionally, an ordinary object such as a urinal cannot be thought to be art because it is not created by an artist or possesses any meaning of art, it is not unique, and it possesses hardly any probable visual properties of the traditional, hand-crafted art object; an intervention, in which image, text or object is positioned in an unpredicted context, hence rousing awareness to that context: e.g. the museum or a public space; written text, where the concept, intention or exploration is presented in the form of language; documentation, where the actual work, concept or action, can only be presented by the evidence of videos, maps, charts, notes or, most often, photographs.
Joseph Kosuth’s One and Three Chairs (photo) is an example of documentation, where the ‘real’ work is the concept – ‘What is a chair?’ ‘How do we represent a chair?’ And hence ‘What is art?’ and ‘What does it represent?’. The three elements that we can actually see (a photograph of a chair, an actual chair and the definition of a chair) are secondary to it. They are of no account in themselves. It is a very ordinary chair, the definition is photostatted from a dictionary and the photograph was not even taken by Kosuth – it was untouched by the hand of the artist.
If a work of conceptual art begins with the question ‘What is art?’ rather than a particular style or medium, one could argue that it is completed by the intention ‘This could be art’: ‘this’ being presented as object, image, performance or idea revealed in some other way. Conceptual art is therefore ‘reflexive’: the object refers back to the subject, it represents a state of continual self-critique.
Being an artist now means to question the nature of art… The function of art as a question, was first raised by Marcel Duchamp… The event that made conceivable the realization that it was possible to ‘speak another language’ and still make sense in art was Marcel Duchamp’s first unassisted readymade. With the unassisted readymade, art changed its focus from the form of the language to what was being said. Which means that it changed the nature of art form from a question of morphology to a question of function. This change – one from ‘appearance’ to ‘conception’ – was the beginning of ‘modern’ art and the beginning of ‘conceptual’ art. All art (after Duchamp) is conceptual (in nature) because art only exists conceptually… Artists question the nature of art by presenting new propositions as to art’s nature.
Kosuth, Art After Philosophy (1969)
Hence runs the famous passage of the serial essay first published in Studio International in 1969 in ‘Art After Philosophy’, in which Kosuth set out his stall for purely conceptual art. In it we find transition from the negative questioning inherent in the aesthetic indifference of Duchamp’s readymades to the positive ‘investigations’ of Kosuth’s distinct brand of Conceptual art: a transition from the wide-eyed surprise of ‘This is art?’ to a new way of claiming ‘This is art.’
Before standing a chance of entering into the general vernacular, art first must be conceived, then executed and lastly presented to a public, however small. In the 19th century, in France, the Impressionists were all innovative artists imposing themselves on reluctant audience. The same applies to the great art movements of this era. They consisted of artists producing works that the public for art neither wanted or anticipated, but were forced to gulp down because it posed issues of innovation which could not be avoided. The reluctant audience included collectors and critics, and even older artists, who inevitably feel their own pre-eminence being threatened. Who, after all, is not made to feel uncomfortable by the unknown art form, as for the matter in all things? It is normal and effortless to fall in love with what is preconceived to be good, beautiful, right and proper. We now all love the Impressionists because we have come to acknowledge and therefore feel comfortable with them. But the first and foremost task of the new art is to instigate a sense of comfort.
In autumn 1997, the show ‘Sensation’ subtitled ‘Young British Artists from the Saatchi Collection’ was mounted at the Royal Academy. It was one of the first to focus on shock art. According to the publicity leaflet, ‘Sensation’ was ‘both an attempt to define generation and to present Charles Saatchi’s singular vision in an established public forum.’ On display were 100 works by 42 artists selected from the Saatchi collection. Works that evoked powerful visual and emotional reactions were selected. With the figure of attendance going over 285,000 – ‘Sensation’ undoubtedly created sensation.
Among all the artists shown, Damien Hirst was undoubtedly the most successful and sought after at present. Having several records of the highest ever paid living artist, Hirst’s works creates a phenomenon in the current art market. Hirst’s work falls into seven categories. The first group are his Natural History series, the ‘tank pieces’ which he calls incorporates dead and sometimes dissected creatures such as, cows and sheep as well as sharks preserved in formaldehyde. Hirst describes these as ‘suspended in death’ and as the ‘joy of life and inevitability of death’. A pickled sheep, said to have sold for 2.1 million, followed by the first shark.
The second group is Hirst’s long-running ‘cabinet series’, where he displays collections of surgical tools or pill bottles usually found in pharmacy medicine cabinets. The Blood of Christ, was paid $3 million, consists of a medicine cabinet installation of paracetamol tablets. In June 2007 a record was set at Sotheby’s London for the highest price paid at auction for a work by any living artist, $19.1 million for Hirst’s Lullaby Spring, a cabinet containing 6136 handcrafted pills mounted on razor blades.
Spot paintings were Hirst’s third long-running production. Usually named after pharmaceutical compounds, these paintings consist of fifty or more multicoloured circles painted onto a white background, in a grid of rows and columns. The reference to drugs refers to the interaction between diverse elements to create a powerful effect. The spot paintings were produced by assistants. Hirst tells them what colours to use and where to paint the spots, and he does not touch the final art, only to affirm it as a finished product of art with his signature. In May 2007 at Sotheby’s New York, a 76 x 60in spot painting sold for $1.5 million.
The fourth category, spin paintings, are ‘painted’ on a spinning potter’s wheel. One account of the painting process has Hirst throwing paint at a revolving canvas or wood base, wearing a protective suit and goggles, standing on a stepladder, shouting ‘turpentine’ or ‘more red’ to an assistant. Each spin painting represents the energy of random.
The fifth category is butterfly paintings. In one version, tropical butterflies mounted on canvas which has been painted with monochrome household gloss paint. In another version, collages are made from thousands of mutilated wings. The mounted butterflies are intended as another comment on the theme of life and death.
Some of Hirst’s art incorporates several categories; together with publicity-producing titles, like Isolated Elements Swimming in the Same Direction for the Purposes of Understanding, a cabinet of individual fish in a formaldehyde solution combines stuffed creatures with the cabinet series, but has the same intention as the spot paintings, to arrange colour, shape and form.
The sixth category was a collection of 31 photorealist paintings, first shown at the Gagosian Gallery in New York in March 2005. Most canvases depicted violent death. Hirst pointed out that the artworks were, like the shark and the spot and butterfly paintings, produced by a team of assistants. Each painting was done by several people, so no one is ever responsible for a whole work of art. Hirst added a few brushstrokes and his signature.
The seventh category was the much-publicized project – a life-size cast of a human skull in platinum, with human teeth, from an eighteenth-century skull. Encrusted with 8,601 pave-set industrial diamonds with a total weigh of 1100 carats, the cast is titled For the Love of God, the words supposedly uttered by Hirst’s mother on hearing the subject of the project. It was sold for £50 million. Hirst says that For the Love of God is presented in the tradition of memento mori, the skull depicted in classical paintings to remind us of death and mortality.
And most recently, the collection of 25 works, known as The Blue Paintings, are predominantly white images painted on dark blue and black backgrounds, with pictures featuring iguanas, shells, beetles and a still life of a vase of roses, entitled Requiem, White Roses and Butterflies. The collection also includes two self-portraits, two triptychs and several paintings featuring skulls, one of Hirst’s favourite motifs. All the paintings were produced by Hirst himself, without the help of assistants who created some of his most famous pieces.
The illustrious Australian art critic Robert Hughes, however, isn’t buying the hype. This is partly because Hughes – who presents The Mona Lisa Curse, a one-off polemic broadcast on Channel 4 this Sunday – considers Hirst’s work flashy and fatuous. Indeed he has described Hirst’s formaldehyde tiger shark, The Physical Impossibility of Death in the Mind of Someone Living, a “tacky commodity”, and “the world’s most over-rated marine organism”.
The critic said commercial pieces with large price tags mean “art as spectacle loses its meaning” and identified the British artist’s work as a cause of that loss. “The idea that there is some special magic attached to Hirst’s work that shoves it into the multimillion pound realm is ludicrous,” Hughes says. “[The price] has to do with promotion and publicity and not with the quality of the works themselves.”
It is not the first time that Hughes has made public his contempt for Hirst’s art. Four years ago making a speech at the Royal Academy of Art’s annual dinner, he said: “A string of brush marks on a lace collar in a Velazquez can be as radical as a shark that an Australian caught for a couple of Englishmen some years ago and is now murkily disintegrating in its tank on the other side of the Thames.”
Brian Sewell, art critic of the London Evening Standard, was appalled by Hirst’s Turner prize-winning work. ‘I don’t think of it as art,’ he said. ‘I don’t think pickling something and putting it into a glass case makes it a work of art… It is no more interesting than a stuffed pike over a pub door. Indeed there may well be more art in a stuffed pike than a dead sheep. I really cannot accept the idiocy that “the thing is the thing is the thing”, which is really the best argument they can produce. It’s contemptible.’
Even at his most recent show of his Blue Paintings at the Wallace Collection early reviews for the show were not good. The Guardian said that “at its worst, Hirst’s drawing just looks amateurish and adolescent,” and The Independent dismissed the paintings as “not worth looking at.”
Hirst’s work has drawn criticism from all quarters. Predictably, his work has been ridiculed in the tabloid press. When Hirst won the Turner prize in 1995 with Some Went Mad, Some Ran Away, an exhibition he curated and which featured many of his works – including Mother and Child Divided (cow in formaldehyde) and Away from the Flock (sheep in formaldehyde) – the Conservative politician Norman Tebbit wrote in the Sun: ‘Have they gone stark raving mad? The works of the “artist” are lumps of dead animals. There are thousands of young artists who didn’t get a look in, presumably because their work was too attractive to sane people. Modern art experts never learn.’
The Daily Mail’s verdict on the 1999 Turner Prize also referred to Hirst’s work: ‘For 1,000 years art has been one of our great civilising forces,’ the newspaper commented. ‘Today, pickled sheep and soiled beds threaten to make barbarians of us all.’
Reviewing Hirst’s works and the criticisms made on them engage us in discussion about whether the art work he produced command the power and high prices deserved because it is good, or because it is branded? Is the artist famous because of his work, because the public was awed by the shock value of his work, because Charles Saatchi first made him famous with the high price reported in Physically Impossibility, or is he famous for being famous? Another question is perhaps if Hirst is famous because he, as an artist, or took on the role as a social commentator, who offers a profound meditation on death and decay? All these questions clearly imply that Hirst’s work and his talent for marketing and branding cannot be ignored. His brand creates publicity, and his art attracts people who would never otherwise view contemporary art.
What must not be overlooked is the originality of Hirst’s concept. He shaped shared ideas and interests quickly and easily, his work developing during the decade to reflect changes in contemporary life. He made important art that contained little mystery in its construction by relying on the straightforward appeal of colours and forms. His work is striking at a distance and physically surprising close up. Hirst understood art in its most simple and in its most complex. He eliminated abstraction’s mystery by reducing painting to its basic elements. During the time when art was a commodity, he made spot paintings – saucer-sized, coloured circles on white ground – that became luxury designer goods. His art was direct but never empty. In the later spin paintings, Hirst emphasized a renewed interest in hands-on process of making, which is referred as the ‘hobby’-art technique, drawing attention to the accidental and expressive energy of the haphazard. Like the spot paintings, the cabinet of individual fish suspended in formaldehyde worked as an arrangement of colour, shape and form. Overcoming an initial distrust of its ease of assembly, the work came to be seen in the popular mind as a symbol of advanced art, people were mesmerized by how stunning and beautiful ordinary things of the world could be created and seen.
Hirst creating paintings brought together the joy of life and the inevitability of death. A scene of pastoral beauty became one of languid death: in A Thousand Years, flies emerged from maggots, ate and died being zapped by the insect-o-cutor; in In and Out of Love, newly emerged butterflies stuck to freshly painted monochromes. Soon the emphasis changed from an observation of creatures dying to the presentation of dead animals. A shark in a tank of formaldehyde presented a once life-threatening beast as a carcass: it looks alive when it’s dead and dead when it’s alive. Hirst was at his most inventive by elevating the ordinary, the typical and the everyday with his fascination.
Art is about experimenting and ideas, but it is also about excellence and exclusion. In a society where everyone is looking for a little distinction, it’s an intoxicating combination. The contemporary art world is ‘what Tom Wolfe would call a “statusphere”. It’s structured around nebulous and often contradictory hierarchies of fame, credibility, imagined historical importance, institutional affiliation, education, perceived intelligence, wealth, and attributes such as the size of one’s collection.’ Great works do not just arise; they are created – not just by artists and their assistants but also by the dealers, curators, critics, and collectors who “support” the work.
Today’s rapid pace of [artistic] innovation encourages short-term speculation, and speculation, in turn, enables the market to absorb new directions in art. Artistic innovation feeds speculation and vice versa. – Moulin, The French Art Market
Why has art become so popular? In the first place, we are more educated than before, and we’ve developed appetites for more culturally complex goods. Ironically, another reason why art has become so popular is that it is so expensive. High prices command media headlines, and they have in turn popularized the notion of art as luxury goods and status symbols. In a digital world of cloneable cultural goods, unique art objects are compared to real estate. They are positioned as solid assets that won’t melt into air. Auction houses have also courted people who might previously felt excluded from buying art. And their visible promise of resale has endangered the relatively new idea that contemporary art is a good investment and brought “greater liquidity” to the market. But the art market also affects perception. Many worry that the validation of a market price has come to overshadow other forms of reaction, like positive criticism, art prizes, and museum shows. Art needs motives that are more profound than profit if it is to maintain its difference from – and position above – other cultural forms.
Nevertheless, collectors demand for new, fresh and young art is at an all-time high. But as Burge (Christopher Burge, Christie’s chief auctioneer) explains, it is also a question of supply: “We are running out of earlier material, so our market is being pushed closer to the present day. We are turning from being a wholesale secondhand shop to something that is effectively retail. The shortage of older goods is thrusting newer work into the limelight.” Another Sotheby’s specialist explains, “Our lives are constantly changing. Different things become relevant at different times in our lives. We are motivated by our changing sensibilities. Why can that not be applied to art as well?” Art used to embody something meaningful enough to be relevant beyond the time at which it was made, but collectors today attracted to art that “holds up a mirror to our times” and are too impatient to hang on to the work long enough to see if it contains any ‘timeless” rewards. Experts say that the art that wells most easily at auction has a “kind of immediate appeal” or “wow factor”. On one level, the art market is understood as the supply and demand of art, but on another, it is an economy of belief. “Art is only worth what someone is willing to pay for it” is the operating cliché. Although this may suggest the relationship between a con artist and his mark, the people who do well believe every word they say – at least at the moment they say it. The auction process is about managing confidence on all levels – confidence that the artist is and will continue to be culturally significant, confidence that the work is a good one, confidence that others will not withdraw their financial support.
Amy Cappellazzo from Christie’s explains what kind of art does well at auctions. Firstly, “people have a litmus test with colour. Brown paintings don’t sell as well as blue or red paintings. A glum painting is not going to go as well as a painting that makes people feel happy.” Second, certain subject matters are more commercial than others: “A male nude doesn’t usually go over as well as buxom female.” Third, painting tends to fare better than other media. “Collectors get confused and concerned about things that plug in. Then they shy away from art that looks complicated to install.” Finally, size makes a difference. “Anything larger than the standard dimension of a Park Avenue elevator generally cuts out a certain sector of the market.” “These are just basic commercial benchmarks that have nothing to do with artistic merit.” With such constraints from the art market, artists would tend to make art that fulfills the criteria to appeal in order to do well in auctions.
“Collecting is a powerful tactic for making sense out of the material world, of establishing trails of similarity through fields of otherwise undifferentiated material. … The drive to acquire more things contains, orders and arranges people’s desires, creating an illusion of mastery through delineating a ‘knowable’ space within that apparently endless universe of materiality. … At whatever scale, collecting is informed by the desire to insure the owner against the inevitability of loss, forgetting and incompletion.” (Cummings, N. Lewandowska, M., The Value of Things)
“Works of art, which represent the highest level of spiritual production will find favour in the eyes of the bourgeois only if they are presented as being liable to directly generate material wealth.”
Karl Marx on the notion of surplus value in Book IV of Captial
When a branded collector like Charles Saatchi purchases an artist’s work in bulk, displays the work in his gallery, loans the work for display in other museums, or exhibits it in Sensation, the cumulative effect is to validate both the work and the artist. Each stage serves to increase the value of Saatchi’s own art holdings.
Being described both as a ‘supercollector’ and as ‘the most successful art dealer of our times, Charles Saatchi himself responded, “Art collectors are pretty insignificant in the scheme of things. What matters and survives is the art. I buy art that I like. I buy it to show it off in exhibitions. Then, if I feel like it, I sell it and buy more art. As I have been doing this for 30 years, I think most people in the art world get the idea by now. It doesn’t mean I’ve changed my mind about the art that I end up selling. It just means that I don’t want to hoard everything forever.” Nevertheless, his practice of buying emerging artists
work has proved highly contagious and is arguably the single greatest influence on the current market because so many others, both veteran collectors and new investors, are following his lead, vying to snap up the work of young, and relatively unknown artists. He was also said to be capable of making or breaking an artist. However, his passion for art is not to be overlooked. In pursuit of established and new artists, Saatchi makes a point of visiting both mainstream and ‘alternative’ galleries, artists’ studios, and art schools. Moreover, he did fall in love with works that were not saleable but still purchased them, for example, Hirst’s A Thousand Years big glass vitrine holding a rotting cow’s head covered by maggots and swarms of buzzing flies and installation art like Richard Wilson’s oil room [both purchased by Saatchi in 1990]. Perhaps Saatchi’s greatest legacy will be that he, more than any other, have been responsible for pitching modern and contemporary art into the British cultural mainstream which he set out to achieve from the start.
In 2005, British Artist Damien Hirst’s work titled “The Physical Impossibility of Death in the Mind of Someone living”(photo) sold for $12 million dollars. People were asking the same question ‘Why would anyone even consider paying this much money for a shark?’ Another concern was that while the shark was certainly a novel artistic concept, many in the art world were uncertain as to whether it qualified as art. The problem with conceptual art is that everyone has their own way of imagining it, based on their own fantasies, but perhaps it is not what they thought it is, it is relevant as long as it escapes the strict rules of painting, sculpture, and photography as they prevailed in the past. “It thus takes paths that have no rules, where the principle of valorization is not or is only very slightly, based on art history.” (Benhamou-Huet, The worth of art, 2008, p.95)
But why so much money? What drives these collectors to invest astronomical sums of money – as much or more than a working-class man earns in a lifetime – in order to possess objects of intrinsic, nonmaterial value? American psychoanalyst Werner Muensterberger explored this quandary in his book Collecting: An Unruly Passion, in which he hints that these avidly amassed objects are like security blankets for grown-ups. “The collector, not unlike the religious believer, assigns power and value to these objects because their presence and possession seem to have a modifying – usually pleasure-giving – function in the owner’s mental state.” The unconscious reasons, then, for what we might call “collector’s security blankets” are manifold. For some, the idea may be that the value of objects they buy will rub off on them. In this way, they may convince themselves that they can “be somebody”. Money itself is meaningless in the upper classes of the art world – everyone has it. What impresses others is the ownership of precious work. What the rich seemed to want to acquire is what economists call positional goods; possessions that prove to the world that they are really rich. And above all, art distinguishes you.
Another part of the answer is that in the world of contemporary art, branding can substitute for critical judgment, and lots of branding was involved here. You are nobody in contemporary art until you have been branded. “Saatchi & Saatchi believes in global marketing, i.e., the use of a single strate

Characteristics of Phobias Depression and OCD

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Characteristics of a Failed State

“The term failed state is often used to describe a state perceived as having failed at some of the basic conditions and responsibilities of a sovereign government. In order to make this definition more precise, the following attributes, are often used to characterize a failed state:

loss of physical control of its territory, or of the monopoly on the legitimate use of physical force therein,
erosion of legitimate authority to make collective decisions,
an inability to provide reasonable public services, and
An inability to interact with other states as a full member of the international community

Common characteristics of a failing state include a central government so weak or ineffective that it has little practical control over much of its territory; non-provision of public services; widespread corruption and criminality; refugees and involuntary movement of populations; and sharp economic decline”
A state could be said to “succeed” if it maintains, in the words of Max Weber, a monopoly on the legitimate use of physical force within its borders. When this is broken (e.g., through the dominant presence of warlords, paramilitary groups, or terrorism), the very existence of the state becomes dubious, and the state becomes a failed state. The difficulty of determining whether a government maintains “a monopoly on the legitimate use of force” (which includes the problems of the definition of “legitimate”) means it is not clear precisely when a state can be said to have “failed.” This problem of legitimacy can be solved by understanding what Weber intended by it. Weber clearly explains that only the state has the means of production necessary for physical violence (politics as vocation). This means that the state does not require legitimacy for achieving monopoly on the means of violence (de facto) but will need one if it needs to use it (de jure).

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The term is also used in the sense of a state that has been rendered ineffective (i.e., has nominal military/police control over its territory only in the sense of having no armed opposition groups directly challenging state authority; in short, the “no news is good news” approach) and is not able to enforce its laws uniformly because of high crime rates, extreme political corruption, an extensive informal market, impenetrable bureaucracy, judicial ineffectiveness, military interference in politics, cultural situations in which traditional leaders wield more power than the state over a certain area but do not compete with the state, or a number of other factors.
The Crisis States Research Centre defines a “failed state” as a condition of “state collapse” - i.e., a state that can no longer perform its basic security and development functions and that has no effective control over its territory and borders. A failed state is one that can no longer reproduce the conditions for its own existence. This term is used in very contradictory ways in the policy community (for instance, there is a tendency to label a “poorly performing” state as “failed” – a tendency the Crisis States Research Centre rejects). The opposite of a “failed state” is an “enduring state” and the absolute dividing line between these two conditions is difficult to ascertain at the margins. Even in a failed state, some elements of the state, such as local state organisations, might continue to exist.
Indicators of state vulnerability
The index’s ranks are based on twelve indicators of state vulnerability – four social, two economic and six political. The indicators are not designed to forecast when states may experience violence or collapse. Instead, they are meant to measure a state’s vulnerability to collapse or conflict. All countries in the red (Alert, FSI of 90 or more), orange (Warning, FSI of 60 or more), or yellow (Moderate, FSI of 30 or more) categories display some features that make parts of their societies and institutions vulnerable to failure. Some in the yellow zone may be failing at a faster rate than those in the more dangerous orange or red zones, and therefore could experience violence sooner. Conversely, some in the red zone, though critical, may exhibit some positive signs of recovery or be deteriorating slowly, giving them time to adopt mitigating strategies.
Social indicators
Demographic pressures: including the pressures deriving from high population density relative to food supply and other life-sustaining resources. The pressure from a population’s settlement patterns and physical settings, including border disputes, ownership or occupancy of land, access to transportation outlets, control of religious or historical sites, and proximity to environmental hazards.
Massive movement of refugees and internally displaced peoples: forced uprooting of large communities as a result of random or targeted violence and/or repression, causing food shortages, disease, lack of clean water, land competition, and turmoil that can spiral into larger humanitarian and security problems, both within and between countries.
Legacy of vengeance-seeking group grievance: based on recent or past injustices, which could date back centuries. Including atrocities committed with impunity against communal groups and/or specific groups singled out by state authorities, or by dominant groups, for persecution or repression. Institutionalized political exclusion. Public scapegoating of groups believed to have acquired wealth, status or power as evidenced in the emergence of “hate” radio, pamphleteering and stereotypical or nationalistic political rhetoric.
Chronic and sustained human flight: both the “brain drain” of professionals, intellectuals and political dissidents and voluntary emigration of “the middle class.” Growth of exile/expatcommunities are also used as part of this indicator.
[edit]Economic indicators
Uneven economic development along group lines: determined by group-based inequality, or perceived inequality, in education, jobs, and economic status. Also measured by group-based poverty levels, infant mortality rates, and education levels.
Sharp and/or severe economic decline: measured by a progressive economic decline of the society as a whole (using: per capita income, GNP, debt, child mortality rates, poverty levels, business failures.) A sudden drop in commodity prices, trade revenue, foreign investment or debt payments. Collapse or devaluation of the national currency and a growth of hidden economies, including the drug trade, smuggling, and capital flight. Failure of the state to pay salaries of government employees and armed forces or to meet other financial obligations to its citizens, such as pension payments.
Political indicators
Criminalization and/or delegitimisation of the state: endemic corruption or profiteering by ruling elites and resistance to transparency, accountability and political representation. Includes any widespread loss of popular confidence in state institutions and processes.
Progressive deterioration of public services: a disappearance of basic state functions that serve the people, including failure to protect citizens from terrorism and violence and to provide essential services, such as health, education, sanitation, public transportation. Also using the state apparatus for agencies that serve the ruling elites, such as the security forces, presidential staff, central bank, diplomatic service, customs and collection agencies.
Widespread violation of human rights: an emergence of authoritarian, dictatorial or military rule in which constitutional and democratic institutions and processes are suspended or manipulated. Outbreaks of politically inspired (as opposed to criminal) violence against innocent civilians. A rising number of political prisoners or dissidents who are denied due process consistent with international norms and practices. Any widespread abuse of legal, political and social rights, including those of individuals, groups or cultural institutions (e.g., harassment of the press, politicization of the judiciary, internal use of military for political ends, public repression of political opponents, religious or cultural persecution.)
Security apparatus as ‘state within a state’: an emergence of elite or praetorian guards that operate with impunity. Emergence of state-sponsored or state-supported private militias that terrorize political opponents, suspected “enemies,” or civilians seen to be sympathetic to the opposition. An “army within an army” that serves the interests of the dominant military or political clique. Emergence of rival militias, guerrilla forces or private armies in an armed struggle or protracted violent campaigns against state security forces.
Rise of factionalised elites: a fragmentation of ruling elites and state institutions along group lines. Use of aggressive nationalistic rhetoric by ruling elites, especially destructive forms of communal irredentism (e.g., “Greater Serbia”) or communal solidarity (e.g., “ethnic cleansing”, “defending the faith”).
Intervention of other states or external factors: military or Para-military engagement in the internal affairs of the state at risk by outside armies, states, identity groups or entities that affect the internal balance of power or resolution of the conflict. Intervention by donors, especially if there is a tendency towards over-dependence on foreign aid or peacekeeping missions.

The Bauhaus Movement: Characteristics and History

From the expression “Bauhaus” we still feel something fresh. In every day speech it is associated with the beginning of the modernism and it is invoking in us association with basic forms (square, triangle and circle), basic colours (red, yellow and blue), furniture from the metal, white architecture and functionalism. History of the small school that Bauhaus was, is a mixture of facts and interpretation from different sources. But Bauhaus was the phoenix that every generation understands differently.
For us, Bauhaus is a symbol of rationalization and modernity of lifestyle, where we cannot find any unnecessary comfort. At the same time, it is an enemy for the conservative culture.
We can say that Bauhaus has been connected with left wing all the time. For Nazi Germany Bauhaus was “culturally Bolshevik”, “international” and “Jewish”. But Nazis used the modern devices of the Bauhaus very often. Almost all members of the Bauhaus emigrated and lot of Jewish relatives were killed. In German Democratic republic, where the main school (Weimar and Dessau) was established, Bauhaus was denied till sixties. After that, they started to integrate it to their cultural heritage. On other hand, for the Federal Republic of Germany, Bauhaus was the main part of modernism.

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A Graphic design of Bauhaus acknowledges this historical concept and invites readers to take a fresh look at the facts about typography and advertising and printing workshop at the Bauhaus school. It is for the first time in ninety years after establishment of the most successful art academy of twentieth century, the Graphic design of Bauhaus, which brings together works of graphic design from three different schools of Bauhaus located in Weimar, Dessau and Berlin. The team has brought the numerous treasures of the collections of the masters such as Laszlo Moholy-Nagy, Joost Schmidt and Herbert Bayer.
We wish that the readers will enjoy A Graphic design of Bauhaus and they will focus and concentrate on the creativity of the Bauhaus.
Historical evolution
When the Germany was established in 1871 it experienced change from the agrarian state into industrial. The reform artists of secession from Darmstadt, Munich and Dresden brought to Germany movement of Arts and Crafts from England, which was actually an opposition to industrialization. The new school that was set up in that period was characterised by different workshops, the most famous schools were Art school in Munich and Art and craft school in Weimar set up by Henry van de Velde in 1908. In 1907 Deutcher Werkbund (Union of German art), which conciliated between capitalism and culture was set up in Munich.
In 1910, Walter Gropius became a member of Deutcher Werkbund, where he organized an exhibition of industrial works and during that time he gained a lot of experience for leading Bauhaus school.
During the war, Gropius was very good leader and during that four-year period he was very quickly promoted to embarkation officer. After the war, in 1919, he continued his discussion with Velde about his succession. When he returned to Saxony, the School of art was closed and the only school that existed there was School of arts and crafts. He wanted to unite both schools and both schools accepted it. This was his first step for the Bauhaus school.
“Architects, painters, sculptors, we must all return to crafts! For there is no such thing as “professional art”. There is no essential difference between the artist and the craftsman. The artist is an exalted craftsman. By the grace of Heaven and in rare moments of inspiration which transcend the will, art may unconsciously blossom from the labour of his hand, but a base in handicrafts is essential to every artist. It is there that the original source of creativity lies.
Let us therefore create a new guild of craftsmen without the class-distinctions that raise an arrogant barrier between craftsmen and artists! Let us desire, conceive, and create the new building of the future together. It will combine architecture, sculpture, and painting in a single form, and will one day rise towards the heavens from the hands of a million workers as the crystalline symbol of a new and coming faith.” – Walter Gropius
Weimar (1919 – 1925)
Walter Gropius wanted to create an architecture school that will reflect the time after the World War I. In 1919 he published manifesto of Bauhaus, which was focused against academic reform for art school. Main idea of the manifest was co-operation between craftsmen and artists.
According to the other universities, Gropius reached back to the old model of craftsman’s guilds.
At the early age of Bauhaus was founded organization so study that was base of Bauhaus: the successful admissions examination, all students had to attend one year of preparation course called Vorkurs (primary course) – a sort of trial semester, where they learned the sense for colours, materials, structures and they developed certain skills. After this preparation they were divided into workshops to earn a certificate of apprenticeship and simultaneously underwent artistic training. Between years 1919 and 1923 Bauhaus was strongly influenced by expressionism. After that, when Gropius talked about the school, he did not want to accept similarity of the De Stijl, the school he was very much against. In 1923, Bauhaus changed the direction and ideas. At that time, they were influenced by functionalism (they co-operated with Neue Sachlichkeit movement). In February 1924, social-democratic government, which has been supportive of Bauhaus, lost the main control in parliament to Nationalists. As the school was dependent on the government grants, and in 1925 Gropius signed less financing than was necessary for the school’s budget, at the end of same year Bauhaus had to be closed in Weimar.
Dessau (1925 – 1932)
When the Bauhaus had to move out, under the pressure of conservatives and rightists, several cities offered to take it over. But the Bauhaus decided to move to Dessau, because they offered them to build a new school. At that time, school was entering a new era. The lessons officially started on April 1st 1925. The Bauhaus program was changed; what was important at that time, was connection between creativity and industry. In 1927 Walter Gropius called for Hannes Meyer, who became a leader of architecture department. In 1928 when Gropius resigned, Meyer became a director of the Bauhaus. This change was very important for Bauhaus because Meyer introduced the extension of the scientific basis of teaching methods and artworks became more scientific. For teaching the lectures at the school leading experts across the entire field of philosophy, psychology, and physics were invited.
Now in the workshops, students began to produce standard products that became available for majority of population.
Meyer raised the number of students to 200, what was not very good for school, because it has lost the elite character. Bauhaus had to be accessible to the proletariat.
In 1930 Meyer was replaced by new director Mies van der Rohe, who kept the distance from any political stance. He wanted students to be primarily educated technically, artistically and in the crafts, so the education looked back to the Weimar basis. As director of Bauhaus, he had to face to lot of problems, school did not receive public construction contracts, and the city had reduced the its funding. He also had to face to the growing hostility towards Bauhaus in Dessau.
Berlin (1932 – 1933)
When the Nazi Party was becoming to the power, many of the members labelled the Bauhaus “un-German” and they accused the school from the “Bolshevik subversive activities”.
Bauhaus was forced to move to Berlin in 1932, since when it was a private school only, but circumstances forced the director to close the school in April 1933.
Political tension
As the director of Bauhaus, Mies van der Rohe, had to face a lot of difficulties, which mainly occurred during financial crisis in 1929 and also the enemies to Bauhaus in Dessau. City reduced financial funding dedicated to Bauhaus. Budgets in years 1931 and 1932 were lower than spending appraised by Meyer. The similar public contracts, that Gropius and Meyer received; did not come. The space in Bauhaus building had to cleared for technical school that had more than 1400 students (meanwhile Bauhaus had only around 170 students), so the Bauhaus could use only one floor with seven ateliers.
Strong student communistic party also existed at Bauhas. The last issue of their magazine was printed in Berlin in 1932, which was strongly supported by many students. Groups of students orientated to the right also existed there. In 1933, after school was closed, they made a petition for re-opening it.
Mies van der Rohe aided also the spiritual sight of Bauhaus with lot of seminars. He invited philosophers such as Helmuth Plessner and Hans Freyer, who taught by anthropologies regularity.
Preliminary course
One of the most important innovations in teaching at Bauhaus was preliminary course. At the beginning, this course was only one semester long. but later it changed into two semesters and what was important about this course was the fact, that every student had to pass it. After that it had to be decided, if the student is able to study further or not. From 1919, the course was lead by Johannes Itten, who made some specific rules that were irrational, but from the winter semester 1920/21 they were obligatory.
As Itten became the big opponent for Gropius’s new orientation for industry and productivity, in 1923 he decided to leave school. After that Gropius made a big revision of preliminary course. From 1924 the course’s first semester was lead by Josef Albers and more practical than the second one lead by Laszlo Moholy-Nagy that had more theoretical aspects. Josef Albers lead the course as “education of crafts” and it was understood as “creators education”. Moholy-Nagy preliminary course was well known by its three major areas that it was focused on. The first one consisted on learning how to combine elements. The second one was focused on exercises to distinguish composition from construction. And the last one, probably the most famous, was focused on three dimensional study designs. The course was mainly about how to create objects from simple elements and materials.
Hannes Meyer, the director of Bauhaus from the year 1928, the necessity of the preliminary course confirmed. From 1930 the course was changed into courses of Gestapsychology (psychology of form), sociology and social economy. In the same year the communistic students asked for (total) discontinuation of the preliminary course.
In 1930, director Mies van der Rohe declared the preliminary course as voluntary. He introduced the exam at the end of all semesters, that declared who is able to continue study further or not. According to these exams, the preliminary course lost the meaning of choosing talented students, homogenization of students and education to creativity. But the Mies van der Rohe enlarged the preliminary course for the architects of free drawings without instruments, because he wanted to develop their visual abilities. Albers led this course as well. In 1938, the preliminary course was changed into visual training course that had to prepare students to “vision in context”. From today’s point of view, the preliminary course was missing historical, nature and economic context.
For Walter Gropius, the workshops were the most important part of education in Bauhaus. The first concept was, that after the passing preliminary course, the student should start studying to be an architect. This idea has never changed into reality, because at the time when Gropius was director on Bauhaus, the architect department existed just for one year – from 1927 to 1928. So we can say, that during his time, Bauhaus had to reform education system of art and crafts.
In Weimar Bauhaus these workshops existed: the ceramics, the weaving, the metal, joinery, the wall painting, the woodcarving and stone sculpture. Besides the workshops, theater group, graphic editions and printing workshop also existed there. In Dessau, some of the workshops were put together into one workshop, or the name had been changed, or it was discontinued. Finally, only seven workshops existed: the metal, joinery, woodcarving, wall painting, the printing and advertising, sculpture and the theatre.
The teaching of architecture on Bauhaus existed from the year 1927, when three other workshops were formed. After that, it was easier to get the architecture education: the students needed just one year of experience in of the workshops. Lot of students abandoned Bauhaus with journeyman certificate or diploma and they never studied architecture. It mostly happened during the time when Hannes Mayer was the director of the Bauhaus.
Hannes Mayer, as a new director, started with some of the changes. He grouped some of the workshops; he totally discontinued the woodcarving workshops, because the main teacher, Oskar Schlemmer, left the school in 1929. He set up a new workshop for photography, but he wanted to group this workshop with the printing and advertising workshop. So we can say, that during the period when he was in charge, Bauhaus was mainly education institution for designers and architectures.
Everything changed when Mies van den Rohe became the director. After that it was possible to study architecture also without passing the preliminary course. At that time, Bauhaus was mainly orientated to the architecture. The biggest problem of workshops at that time was, that on one hand the workshop represented pedagogic principle but on other hand students had to gain some money by their works.
From expressionism to constructivism
The first years of Bauhaus, 1919 – 1921, were very expressionistic but Walter Gropius was strongly against De Stijl that was very similar to Bauhaus. In year 1923 Bauhaus was ruled by motto “art and technique – new unity” that was characteristic till 1928. But the big change came in 1922, with the first sign being the change of the logo; expressionistic cachet of Bauhaus with “star man” from Karl Peter Rohl changed into constructivism head of man designed by Oskar Schlemmer.
Expressionism, that was politicized after 1918 such as “cathedral of socialism” was now out and De Stijl movement became very popular, mainly because of painter and theoretic Theo van Doesburg.
From April 1921, Doesburg lived in Weimar and intensively cooperated with Bauhaus. He strongly influenced not only students but also teachers. He talked about De Stijl mostly and he abhorred craft that was studied on Bauhaus and he asked to use modern technologies to create a modern life. He thought that artists shouldn’t present their spiritual life or emotions but they should know their responsibility for creating the unity of the world. He did not allow all of the materials and he used just basic colours (red, blue and yellow) combining with no-colours (black, white and grey) but they could be combined in whole, rectangular areas. The creativity was balancing opposite meaning of the expressing tools: black and white, yellow and blue, horizontal with vertical, vacuum and matter. He attributed the creativity of space to the colour, that was popular in wall painting workshop.
Doesburg theory was combination of variety of knowledge. Countervailing of opposites had to come to the achievement of true and beauty of universe. It was followed by belief in machines.
The change from expressionism to constructivism started by group of Hungarian students. For them constructivism meant: constrictive, utilitarian, rational and international. Not only students changed their style but also teachers e.g. Kandinsky made geometrical their expressionistic art language. Composition of Paul Klee became more rationalistic; stroke of the brush and coating of colours was less personal, technical look. Schlemmer developed the theory of art, where he connected the basic human movements such as standing, swimming and walking with elementary ideas combining the basic ideas of De Stijl and constructivism. When Hungarian painter Laszlo Moholy-Nagy entered to Bauhaus in 1923, he changed his expressionistic past into constructivism art language. Until the year 1928 Bauhaus was influenced by different influence, that was not only from his own teacher but also from outside architects and designer suggestions.
Alter Adolph Gropius (* 18. may, 1883, Berlin, German Empire – † 5. July, 1969, Boston, USA)
He was born into the architect family. He started studies to be an architect in 1903 in Munich and he finished in 1907 in Berlin. He cooperated with Mies van der Rohe, Dietrich, Le Corbusier, Arcks and Adolf Meyer. But his biggest carrier started when he became a director of Grand-Ducal Saxon School of Arts and Crafts in 1919. He transformed whole school into world famous Bauhaus. But under the pressure from conservative party he had to move from Weimar to Dessau in 1924, where he started to teach in more modern way. In Dessau he built the building for school, houses for masters and himself, everything built in a functionalism style. He also built habitation Torten in Dessau, where he created new urban concept, where houses were built in parallel and the main communication was connected to them perpendicular. He left the school in 1928, but he continued working as an architect. Between years 1929 and 1956 he was vice-president of CIAM (Congres International d’Architecture Moderne). In 1934 he had to immigrate to London but then he moved to the USA, where he became a professor at Harvard University, where he modernized education system. He built lot of famous building worldwide such as John. F Kennedy Federal Office Building in Boston; Pan Am Building in New York; University of Bagdad, etc.
Ludwig Mies van den Rohe (* 27. march, 1886, Aachen – † 19. august, 1969, Chicago)
He got his first experience from his father who had his own stone-carving shop. In 1905 he moved to Berlin, where he got job by architect and furniture designer Bruno Paul. He designed his first work when he was just 21 years old. He set up his own office in 1912. We can see that he tried to connect architecture with techniques in his work. He was the first one to use flat roof and cubistic material. Between 1930 and 1933 he became director of Bauhaus, but he had to face very complicated situation, so in 1938 he immigrated to the USA. He was famous because of his sentence ” less is more” and his Brno chair is so famous that is still produced nowadays. We can find his buildings worldwide e.g. villa Tugendhat in Brno, Seagram Building in New York, National Gallery in Berlin, etc.
Laszlo Moholy-Nagy
(July 20, 1895 – November 24, 1946), chyba hviezdicka a krizik
He was born into Jewish Hungarian family but he changed his German surname into Hungarian surname after his aunt and he added his second name after the city where he grew up. He studied law in Budapest and he met with constructivism in Vienna for the first time.
In 1923 he came to Bauhaus where he started to teach preliminary course because Johannes Itten left the school. We can say, that it was the end of his expressionism carrier and as we know, the Bauhaus was well known school, because of versatility of artists and he was no exception. Later at the Bauhaus he focused on photography and typography, but his main passion was preliminary course, where he gave students very complicated tasks to solve. From 1925 to 1928 he cooperated with Herbert Bayer in printing workshop and his responsibility was graphic edition of almost all books printed by Bauhaus.
Moholy-Nagy was against the typical photography and he tried to teach his students to see and present world by different perspective and he taught students to use the modernist techniques. He used different techniques such as montage, inversion of light values, double illumination, etc.
Officially, the photography was learnt at the Bauhaus since 1929, but at that time, he was not more in school. In 1928 he moved to Berlin and after that he travelled through Europe and finally he moved in 1937 to Chicago where he lived till his death.
Hannes Meyer (* 18. November 1889 – † 19. July 1954)
He was born in Switzerland and practised as an architect in different countries such as Switzerland, Belgium and Germany.
Meyer’s design philosophy is reflected in the following quote:
“1. sex life, 2. sleeping habits, 3. pets, 4. gardening, 5. personal hygiene, 6. weather protection, 7. hygiene in the home, 8. car maintenance, 9. cooking, 10. heating, 11. exposure to the sun, 12. services
In 1926 he established his own company with his friend and during that time, he produced his two most famous projects for the Geneva League of Nations Building and Basel Petersschule. Unfortunately none was built.
In 1927 he came to Bauhaus as a teacher of architecture and only one year later he became to be a director. A lot of changes to the education system came with him, the most important being enlargement of the theoretical scientist base of education. He was a good example of extreme functionalism and he was strongly against art part of architecture. During that time, many good teachers left the school e.g. Herbert Bayer and Macel Breuer. During the holidays in 1930, he had to leave Bauhaus, because of his strict communistic thinking. He moved to Moscow where he formed group Left Column. Consequently, he moved to Switzerland, Mexico and back to Switzerland where he died in 1954.
Herbert Bayer (Hagg, Austria, 1900 – Santa Bárbara, United States, 1985), chyba hviezdicka a krizik
He was one of the students at the Bauhaus being taught by e.g. Wassily Kandinsky, Laszlo Moholy-Nagy and meno Gropius. After his studying, he was named to be a director of printing and advertising workshop. One of his characters was that he used only sans serif typefaces for almost all of the Bauhaus publications. In 1925 he created his own typeface called Universal today known as Bayer Universal. He left the school in 1928 and he moved to Berlin where he became to be the director for German magazine Vogue. Ten years later, he escaped from Nazi Germany to New York, where made carrier almost in every possible aspect of graphic art. He stayed in the USA till his death and he produced “phonetic alphabet” for English. It was basically again sans serif typeface but without capital letters. He became one of the most influential graphic designers of the twentieth century.
Printing and advertising workshop
During seven years of existence, 1925 – 1932, printing and advertising workshop changed completely. Each director had main role for this workshop. When Walter Gropius was the director of Bauhaus it was a production workshop in a small scale. The main product was advertising. When Hannes Mayer became director of Bauhaus everything changed. Joost Schmidt, the head of the workshop, developed the advertising, but in three-dimensional forms where quality of a graphic design was more important. Meanwhile in De Stijl and constructivism the art was more important than quality. When Schmidt dream became true, to create o professional printing and advertising workshop, everything changed again, new director, Mies van den Rohe, it was again only the teaching workshop and the result was that this workshop was closed before whole Bauhaus was closed.
When Bayer became a head of the workshop, he gave it a new purpose by introducing the subject of advertising. The new teaching timetable of 1926 contained a summary of the content of its classes: the methods and construction of advertising and their effective application were to be investigated and, in future planning, standardization and advertising psychology were to be studied.
In 1925, this workshop became a obligatory part of preliminary course and the Bauhaus was distinguished from other graphic schools that tried to train student to be a specialist in advertising. In first semester the students supposed to take undertake practical work after that it was combination of theoretical and practical. They studied the differentiation of advertising media and the most important was studying how to use photography and film in advertising. In forth semester they studied the structure and drafting of advertising plans. They had to focus on German industrial format and what was the most important for them, was the catch of the viewer’s eye. Bayer focused on design of advertising, rather than the placement, meanwhile when Joost Schmidt was head of printing and advertising workshop, he focused on visual rules of design. At the beginning the students had to experiment with geometric forms but it was almost forbidden to use free forms. For him, it was unsuitable to use collages, typeface exercises and photographs but the abstract form was the most important for advertising.
Schmidt created a new kinetic model for exhibition according to Moholy-Nagy work. Meanwhile, students got the technique skills for advertising in typesetting and printing. A new workshop for photography directed by Peterhans was opened in 1929, but till that time Schmidt tried to teach students perspective drawing and painting. Between 1928 and 1930 they produced several exhibitions, for example in Berlin and Linz. But their financial situation went wrong and also Mies van der Rohe was very critically to Schmidt workshop so for the next exhibition he wanted to show his doubts about Schmidt. What was even worse was the fact that even the photography students had to distance from Schmidt teaching methods. Following year he was under big pressure and finally in 1932 he collapsed.
Typography in Bauhaus
In the first year of existence of Bauhaus school in Weimar, typography was not very well developed. There were just two calligraphers at school, Johannes Itten and Lothar Schreyer but for them, it was just expression of artistic meaning and at the beginning practical field of application was missing there. Development of typography started in 1923, when school poster with unique typeset and design was made. Year after that, it was changed to school emblem. The original one, that looked like mason’s mart, a spread-eagled figure carrying aloft a pyramid, was replaced by the new one designed by Oskar Schlemmer that looked like geometric profile of a head, which could be very simply reproduced.
The typical characters for Bauhaus typography were rules and sans serif types, that somehow became a stereotype, but accepting the stereotype was the part of radical reform. In 1921 the Bauhaus master Johannes Itten tried to make reform, where he combine black letter (Fraktur) with heavy Victorian types, where we can see the combination of printer’s ornaments, dots and squares. He set up one of the first Bauhaus characteristics, which was geometrical feature of the page.
The next step for Bauhaus typography was to solve the problems with German alphabet that was quite old according to the new machine age. They decided to write all nouns in German starting with capital letter. A footnote, which appeared on the Bauhaus letterhead designed by Herbert Bayer in 1925, stated the school’s attitude uncompromisingly:
Towards a simplified way of writing

This is the way recommended by reforms of lettering as our future letterform, cf. the book ‘sprache und schrift’ (speech and letterform) by dr. porstmann, union of German engineers publishers, Berlin 1920.
In restricting ourselves to lower-case letters our type loses nothing, but becomes more easily read, more easily learned, substantially more economic
Why is there for one sound, for example a, two signs A and a? one sound, one sign, why two alphabets for one word, why double the number of signs, when half would achieve the same?

The main character for Bauhaus typography was geometrical base that was base for functionalism. At the Bauhaus, Josef Alberts and Joost Schmidt made a lot of alphabets, but it was Bayer, who was the main typographer there. His well known typeface Universal (1926) consisted of circles and straight lines of a constant thickness on a grid squares. They used upper and lower case, but they never combined them and they always combined them with vibrant colours.
But situation has radically changed when László Moholy-Nagy entered the school in 1923. He introduced the ideas of “New Typography”. What he wanted, basically, was that the typography had to be communication medium and message should be clear. Since 1923 his influence was visible on advertising campaign for Bauhaus and after that when the Bauhaus moved to Dessau, he became co-editor of Bauhaus typography, where the Bayer was director of printing and advertising workshop. The typical characteristic of that period was that bold sans serif was used for heading and subheading for single words to interrupt the flow of lines. This innovation was technically complicated in metal type.
From that time, the typography was very closely connected with corporate identity of school. It was clear, that type prints, the articulation and accentuation of pages through distinct symbols or typographic elements highlighted in colour, and finally direct information in a combination of text and photography were the main characteristics for Bauhaus typography.
Herbert Bayer also designed letters that appeared on Bauhaus building in Dessau. He was responsible for all printing material for Bauhaus. Because the workshop was limited to narrow sans-serifs fonts some of them became very similar. He used vertical and horizontal rules and printed it on red and black and this became another stereotype of the Bauhaus. But it was very common for many avant-gardes. His most ambitious work was poster designed for Kandinsky sixteen’s birthday exhibition. It was printed on orange paper and again he printed it red and black and you can see strong rectangularity.
Bauhaus, De Stijl and Vkhutemas
Main characteristics of Bauhaus:
The main colours that they used are blue, yellow and red and the characteristic shapes were triangle, square and circle. One of the most characteristic features for the Bauhaus was simplicity. The design was very simple in lines and shapes. They used straight lines or gentle, smooth curves. They weren’t afraid to use shapes. It wasn’t so strict as in De Stijl. We can also see repetition of certain layers. They also used a row of identical cylinders of two, three corners that were out from the others to produce very simple but strong effect. Next strong feature was quality. The products they made were light and airy. They used new materials such as steel, aluminium, plastics and glass. Tables and chairs are another strong feature. Often they were focused on design some small pieces where they used materials such as plastics, class, chrome and other metals that could somehow highlight the materials themselves. The materials had to be cleaned by water easily and quick. We should also understand the difference between the functionalism of Craftsman and Bauhaus design. The other typical feature was the Bauhaus material wasn’t handcrafted pieces but it was made in mass production. They had to have the industrial look.
Main characteristics of De Stijl:
Same as in the Bauhaus the main colours for De Stijl were red, yellow and blue and supporting colours we can say that were black, white and grey. Every colour had some meaning for example the yellow meant expansive and vertical. On the other hand the blue one was opposite, soft, retiring and horizontal. The meaning of red was expressed the radiating movement of the life. Combining all three colours you will have green. But for example