Goodwill, balance sheet structures and accounting standards Recent developments and issues for French groups.

This article aims to assess the economic issues related to the accounting treatment of goodwill, and more specifically the likely repercussions of the transition to International Financial Reporting Standards (IFRS) on the consolidated accounts of listed companies with effect from 1 January 2005. Based on observations derived from a representative database of French groups, the article demonstrates a marked increase in the amount of goodwill and similar intangible assets in the balance sheets of large groups, and especially of CAC 40 groups, for whom the ratio of such assets to equity reached 82% in 2002. The difficulties experienced in some sectors, especially telecoms and media, led some groups to record substantial write-downs of goodwill and similar intangibles, leading to huge accounting losses being reported in 2001 and 2002. The gearing of these groups, which had risen as a result of external growth strategies partly based on debt financing, then increased further due to the contraction in equity caused by these losses. Hence the observation of a deterioration in balance sheet structure in 2002, extending into 2003. In the light of these observations, can accounting standards yield information that accurately reflects deterioration in a company’s financial structure as early as possible? In view of the rapid developments in recent years described in this article, the question of whether or not to amortise goodwill is no longer a relevant issue. Nevertheless, in a broader perspective, the virtual disappearance of goodwill amortisation that is likely to result from the adoption of IFRS could, in an economic downturn, induce greater volatility in financial statements, at the level of both earnings and equity. This is because downward adjustments of valuations are likely to take the form of one-off charges rather than being spread over time. Notwithstanding this potential additional volatility, the approach recommended by IFRS 3 on business combinations nonetheless gives financial statement users important information about changes in the wealth of a group during an economic downturn, and indicates any loss of that wealth due to over-priced acquisitions. Recognition of goodwill as a separate asset thus has the effect of highlighting the potential fragility of corporate wealth which is based partly on goodwill. Furthermore, it contributes to the general drive towards greater international comparability of accounting standards. However, impairment tests cannot always rely on market prices. There is no guarantee that there will be a deep and liquid market in assets comparable with those that generated the goodwill, and the more specific the asset and the longer the period since acquisition, the more this will apply. It therefore becomes necessary to devise hypotheses, which provide some latitude in the choice of valuations. Moreover, the extent of impairment losses may in itself send out a strong signal, leading to a reappraisal of expectations and share prices. This could trigger a downward spiral, which could only be contained in an efficient market. In the final analysis, the impact of the reform of the accounting treatment of business combinations, and of goodwill arising on such combinations, will largely hinge on how the preparers of financial statements apply IFRS 3, and on the scrutiny brought to bear on the accuracy and meaning of the figures by auditors and analysts. Users will no doubt be able to place more reliance on financial statement preparation and analysis in sectors where only a few large groups have goodwill in their balance sheets, making comparisons between groups easier. Information will be harder to assess where valuations of goodwill and intangibles relate to highly specific or relatively new activities.

Effects of pitch and timing expectancy on musical emotion

Pitch and timing information work hand in hand to create a coherent piece of music; but what happens when this information goes against the norm? Relationships between musical expectancy and emotional responses were investigated in a study conducted with 40 participants: 20 musicians and 20 non-musicians. Participants took part in one of two behavioural paradigms measuring continuous expectancy or emotional responses (arousal and valence) while listening to folk melodies that exhibited either high or low pitch predictability and high or low onset predictability. The causal influence of pitch predictability was investigated in an additional condition where pitch was artificially manipulated and a comparison conducted between original and manipulated forms; the dynamic correlative influence of pitch and timing information and its perception on emotional change during listening was evaluated using cross-sectional time series analysis. The results indicate that pitch and onset predictability are consistent predictors of perceived expectancy and emotional response, with onset carrying more weight than pitch. In addition, musicians and non-musicians do not differ in their responses, possibly due to shared cultural background and knowledge. The results demonstrate in a controlled lab-based setting a precise, quantitative relationship between the predictability of musical structure, expectation and emotional response.Comment: 53 pages, 5 figures; Submitted to Psychomusicolog

PVP2006-ICPVT11-93645 CALANDRIA TUBE TO TUBESHEET ROLLER-EXPANDED JOINT QUALIFICATION

ABSTRACT The complex calandria tube to calandria tubesheet roller-expanded joint in CANDU nuclear reactors is usually qualified by test. In this paper, a state-of-the-art numerical simulation is undertaken in order to improve the understanding of the behaviour of the joint to support design modifications and provide assurance that the test rig envelopes behaviour of the in-situ reactor assembly. Parameters such as hoop stress, and plastic deformation of the assembly are predicted. The analysis results are also compared with the available test data and insitu experimental data. The analysis results show that the test performed to qualify the joint using a small plate and single joint is representative of the in-situ reactor configuration

Learning from sustainable development: education in the light of public issues

Education for sustainable development (ESD) is increasingly affecting environmental education policy and practice. In this article we show how sustainable development is mainly seen as a problem that can be tackled by applying the proper learning processes and how this perspective translates sustainability issues into learning problems of individuals. We present a different perspective on education in the context of sustainable development based on novel ways of thinking about citizenship education and emphasizing the importance of presenting issues of sustainable development as ‘public issues’, as matters of public concern. From this point of view, the focus is no longer on the competences that citizens must achieve, but on the democratic nature of the spaces and practices in which participation and citizenship can develop

Analysis of steroid hormones and their conjugated forms in water and urine by on-line solid-phase extraction coupled to liquid chromatography tandem mass spectrometry

Background: In recent years, endocrine disrupting compounds (EDCs) have been found in rivers that receive significant inputs of wastewater. Among EDCs, natural and synthetic steroid hormones are recognized for their potential to mimic or interfere with normal hormonal functions (development, growth and reproduction), even at ultratrace levels (ng L-1). Although conjugated hormones are less active than free hormones, they can be cleaved and release the unconjugated estrogens through microbial processes before or during the treatment of wastewater. Due to the need to identify and quantify these compounds, a new fully automated method was developed for the simultaneous determination of the two forms of several steroid hormones (free and conjugated) in different water matrixes and in urine.Results: The method is based on online solid phase extraction coupled with liquid chromatography and tandem mass spectrometry (SPE-LC-MS/MS). Several parameters were assessed in order to optimize the efficiency of the method, such as the type and flow rate of the mobile phase, the various SPE columns, chromatography as well as different sources and ionization modes for MS. The method demonstrated good linearity (R-2 > 0.993) and precision with a coefficient of variance of less than 10 %. The quantification limits vary from a minimum of 3-15 ng L-1 for an injection volume of 1 and 5 mL, respectively, with the recovery values of the compounds varying from 72 to 117 %.Conclusion: The suggested method has been validated and successfully applied for the simultaneous analysis of several steroid hormones in different water matrixes and in urine

Identification of chemokine receptors as potential modulators of endocrine resistance in oestrogen receptor–positive breast cancers

Introduction Endocrine therapies target oestrogenic stimulation of breast cancer (BC) growth, but resistance remains problematic. Our aims in this study were (1) to identify genes most strongly associated with resistance to endocrine therapy by intersecting global gene transcription data from patients treated presurgically with the aromatase inhibitor anastrazole with those from MCF7 cells adapted to long-term oestrogen deprivation (LTED) (2) to assess the clinical value of selected genes in public clinical data sets and (3) to determine the impact of targeting these genes with novel agents. Methods Gene expression and Ki67 data were available from 69 postmenopausal women with oestrogen receptor–positive (ER+) early BC, at baseline and 2 weeks after anastrazole treatment, and from cell lines adapted to LTED. The functional consequences of target genes on proliferation, ER-mediated transcription and downstream cell signalling were assessed. Results By intersecting genes predictive of a poor change in Ki67 with those upregulated in LTED cells, we identified 32 genes strongly correlated with poor antiproliferative response that were associated with inflammation and/or immunity. In a panel of LTED cell lines, C-X-C chemokine receptor type 7 (CXCR7) and CXCR4 were upregulated compared to their wild types (wt), and CXCR7, but not CXCR4, was associated with reduced relapse-free survival in patients with ER+ BC. The CXCR4 small interfering RNA variant (siCXCR4) had no specific effect on the proliferation of wt-SUM44, wt-MCF7 and their LTED derivatives. In contrast, siCXCR7, as well as CCX733, a CXCR7 antagonist, specifically suppressed the proliferation of MCF7-LTED cells. siCXCR7 suppressed proteins associated with G1/S transition and inhibited ER transactivation in MCF7-LTED, but not wt-MCF7, by impeding association between ER and proline-, glutamic acid– and leucine-rich protein 1, an ER coactivator. Conclusions These data highlight CXCR7 as a potential therapeutic target warranting clinical investigation in endocrine-resistant BC

Bioavailability in soils

The consumption of locally-produced vegetables by humans may be an important exposure pathway for soil contaminants in many urban settings and for agricultural land use. Hence, prediction of metal and metalloid uptake by vegetables from contaminated soils is an important part of the Human Health Risk Assessment procedure. The behaviour of metals (cadmium, chromium, cobalt, copper, mercury, molybdenum, nickel, lead and zinc) and metalloids (arsenic, boron and selenium) in contaminated soils depends to a large extent on the intrinsic charge, valence and speciation of the contaminant ion, and soil properties such as pH, redox status and contents of clay and/or organic matter. However, chemistry and behaviour of the contaminant in soil alone cannot predict soil-to-plant transfer. Root uptake, root selectivity, ion interactions, rhizosphere processes, leaf uptake from the atmosphere, and plant partitioning are important processes that ultimately govern the accumulation ofmetals and metalloids in edible vegetable tissues. Mechanistic models to accurately describe all these processes have not yet been developed, let alone validated under field conditions. Hence, to estimate risks by vegetable consumption, empirical models have been used to correlate concentrations of metals and metalloids in contaminated soils, soil physico-chemical characteristics, and concentrations of elements in vegetable tissues. These models should only be used within the bounds of their calibration, and often need to be re-calibrated or validated using local soil and environmental conditions on a regional or site-specific basis.Mike J. McLaughlin, Erik Smolders, Fien Degryse, and Rene Rietr

Dye Sensitization of Nanocrystalline Titanium Dioxide with Osmium and Ruthenium Polypyridyl Complexes

A series of osmium polypyridyl complexes having various ground-state reduction potentials has been synthesized and used to sensitize nanoporous titanium dioxide electrodes to solar illumination. The spectral response and current vs potential properties of electrodes modified with these dyes have been compared with the behavior of their ruthenium analogues. The trends can be explained by the differences in absorption spectra and ground-state redox potentials. The osmium complexes appear to be promising candidates for further optimization in operating photoelectrochemical cells for solar energy conversion applications. Of the materials studied, all complexes having ground-state redox potentials in methanol more positive than ∼0.4 V vs aqueous SCE were able to sustain oxidation of I-/I_3- with a high steady-state quantum yield. For electrodes with very low dye coverages, the open-circuit voltage was mainly determined by the rate of reduction of I_2, whereas for high dye coverages, the open-circuit voltage depended on the nature of the complex and on the dye loading level