Deep Night : Views of Old Montreal

A Few Views of Old Montreal in Deep Night

Montreal as seen by Elena in a summer night, during a long walk along the night city which never sleeps. All the pictures have been taken by Elena.

St.Jean Street.

Jacques-Cartier Place.

Some boutiques along the Cartier Place.

Lydia Monaro Galery.

Notre-Dame Street at the Des Armes Square.

Creme de la Creme Coffee House.

Display window.

St.Paul Street and Poutine restaurant (Poutine - national Quebecor plate, nothing in common with the Russian nazi president).

Greenery on the Jacques-Cartier place.

Place Jacques-Cartier, a restaurant.

Nelson Column and Cartier Place.

Municipal building.

Accounting: Facts and Literature

Accounting: Facts and Literature

Becoming a professional accountant is no easy task, however there are several pathways to achieve the coveted designation. Before, there were three designations: CA, CGA and CMA. Now, the three certifications have been blended in the CPA designation. A student with a degree with an accounting major can enrol in the CPA PEP program, while a student with a degree in another field may enrol into the CPA PREP program. Overall, there exists several modules, which must be completed with a certain minimum grade in order to eligible for the PEP program. The courses may be taken at CPA learning, or at accredited colleges and universities. But what is accounting? Below follows a brief review of some facts currently of interest to the accounting literature.

What effects does accounting conservatism have on financial statements and financial statements users? Ruch and Taylor (2015) analyzed several studies to answer the question. The authors defined accounting conservatism as a “downward bias in accounting of the net asset value relative to the economic asset value” (p. 20). In other words, accounting conservatism is expecting the worse, magnifying losses and considering profits unlikely. Further, conservatism may be conditional or unconditional, depending on whether financial news are incorporated into the calculation and reporting. Further according to the paper, conditional conservatism reduces earnings persistence and predictability, while unconditional conservatism is conducive to earnings management because of hidden reserves.

Alternatively, more research is needed to shed light on whether conditional conservatism in accounting facilitates earnings management through the “big bath”. The “big bath” is a term that describes the practice in accounting of making bad results even worse. Thus, the increase from one year to another appears more dramatic resulting in bigger bonuses for the company’s management. Also, new CEOs sometimes use this technique to blame the firms shortcomings on the previous CEO. Moreover, there appears to be a relationship between conditional conservatism and information asymmetry.

Jo-Vin as an expression of New York. Photo by Elena.

Ball & Sadka (2015) stress the importance of studying aggregate earnings. The authors state many interesting facts about earnings at the firm-level, for example that firms with higher earnings growth have higher stock returns as well, but the analysis is complicated by research conducted at the aggregate level. The relationship is of interest to investors in analyzing stocks they hold. Interestingly, the authors show that contemporaneous annual aggregate earnings are negatively correlated with aggregate returns, while a positive correlation is found for firm-level comparisons.

A recurring problem in accounting is earnings management, when deliberately false information is misrepresented in financial reports. The issue arises because of the agent-principal dilemma. Top management is interested in bonuses and salary increases, but they typically do not own the firm. Thus, they are tempted to misrepresent financial data through manipulation to make themselves look better in shareholders’ and company owners’ eyes. Researchers agree that portfolio diversification may attenuate the risk.

Another topic often discussed in accounting literature, namely corporate social responsibility (CSR) is often analyzed and cited. For instance, Huang and Watson (2015) discuss the matter and define CSR as a firms actions driven to achieve some social good beyond the interests of the firm. An example could be a bank becoming more green or environmentally friendly, not as required by law, but simply engaging in the endeavour on a purely voluntary basis to further a social good.

While some may think that accounting is boring, studying accounting and its academic literature may be quite fascinating. Hopefully, the present short essay briefly touches on some accounting facts. Going into more detail is beyond the scope of the present paper.

References:

• Huang, X. B. & Watson, L. (2015). Corporate social responsibility research in accounting. Journal of Accounting Literature, 34: 1-16.

• Ruch, G.W. & Taylor, G. (2015). Accounting conservatism: A review of the literature. Journal of Accounting Literature, 34: 17-38.

• Sadka, G. & Ball, R. (2015). Aggregate earnings and why they matter. Journal of Accounting Literature, 34: 39-57.

Choosing the Best Mortgage

Choosing the Best Mortgage

Some old rules of thumb can help you figure how much you can afford

Choosing a mortgage used to be simple a one-kind fits all proposition. No longer. New choices are continuously being introduced. Deciding which one will work best requires that you make some guesses – how long you will live in the house or what your income will be in future years, for example.

The old rule of thumb was that you could qualify for a mortgage if you had a “housing ratio” of 28 percent or lower. Your housing ration is the percentage of your gross monthly income that you’ll need to spend on housing expenses like taxes, insurance and the mortgage itself. Your total obligation ratio should come in below 38 percent. It is the portion of your income that goes to both housing expenses and any other obligations like credit card debt, car loan and child support.

The catch is, these ratios are no longer inviolable. Some lenders have more lenient standards – a housing ratio of 33 percent, say, and a total obligation ratio of 38 percent. To find out what different lenders’ ratios are, all you have to do is ask. If you come in over 28 percent threshold in some years but not others, you might look for a “non-income verification” loan. These are designed for self-employed people, who often have a hard time showing a steady income. Bankers generally require 25 percent of the purchase price – on other loans 20 percent or even less is acceptable. Typically, non-income verification loans also have a slightly higher interest rate. You can sometimes get around the total obligation ratio simply by shifting your finances around. You might stretch out a car loan so that you have lower monthly payments.

The reason lenders are so particular about the 28 percent and 26 percent ratios is that they sell must of their loans into the secondary markets. Fannie Mae and Freddie Mae, two quasi-governmental organisations, are two of the biggest marketers of mortgages and they set the standards. A local bank of S&L might be willing to make an exception for clients who don’t confirm.

How much income you need to get a mortgage? Photograph: Megan Jorgensen (Elena).

Roses

Roses Royal Enough for Royals

They are the Queens of the garden – here's how to select and care for them

Over the 2,000-year history of rose cultivation, gardeners have developed countless variations of the 250 naturally occurring rose species. Roses come in almost very shape and size and can survive in most parts of the world. And, with the exception of the fabled blue rose, they can be found in every color of the rainbow,

Such history and variety have given roses an air of aristocracy, and like aristocrats, roses demand the best of living conditions wherever they happen to be. They need full sun, extremely well-drained, slightly acidic soil, and 1 or 2 inches of water per week to thrive. A balanced fertilizer mix like 10-10-10 should be applied monthly from spring through early fall, and a spray that combines a fungicide and insecticide should also be used every 7 to 10 days during the growing season. You should prune roses back about one-third to one-half in winter or early spring and remove any dead or broken canes.

As for selecting a specific variety or rose, if scent is your raison d'être, try the Arizona (a grandiflora), the Chrysler Imperial (a hybrid tea), or the Fragrant Cloud (also a hybrid tea). If your thumb is not fully greened, try hardy roses that require little maintenance, such as the Carefree Wonder (a shrub or climber), the Aqyarius (a grandiflora), or the Double Delight (a hybrid tea).

A rose. Picture by Elena.

For the rose gardener looking for the very best, here are the roses judged by the American Rose Society as the most prized in the land based on their color, shape, bloom size, fragrance, and ease of growth:

Hybrid tea – largest of all the roses. First Prize (pink blend), Peace (yellow blend), Granada (red blend), Tiffany (pink), Tropicana (orange-red), Mister Lincoln (dark red), Garden party (white), Double Delight (red blend), Paradise (mauve), Lady X (mauve).

Grandifloras – medium to large blossoms, but taller than hybrid tea. Quen Elizabeth (pink), Pink parfait (pink blend), Sonia (Pink blend).

Floribundas – Smaller than a grandiflora, but with more buds, the smallest floribundas grow in large sprays. Europeana (dark red), Little Darling (yellow blend), Iceberg, White), Walko (Dark red).

Miniatures – The same as the floribunda, only with much smaller blossoms. Starina (Orange-red), Beauty Secret (red), Cinderella (white), Toy Clown (red blend), Magic Carousel (red blend).

Climbers – Large flowers that shoot right up the trellis. Can sometimes be shrubs. Galway Bay (orange-pink), Don Juan (dark red), Handel (red blend), Dortmund (medium red), May Queen (Light Pink).

Old garden roses – From roses that were developed before the turn of the Xxth cenuty. Many varieties. Rosa rubrifolla (pink), Rosa hugonis (yellow), Koenigin ((pink), Sombreuil (white), Tuscany (Mauve).

Hallett Nature Sanctuary

Hallett Nature Sanctuary

Mahrokh & Iradj Sakhai Sanctuary

When Frederick Law Olmsted and Calvert Vaux designed New York Central Park in 1858, they left relatively untouched the rocky Promontory on the north edge of the swamp they transformed into the Pond. The four-acre woodland was formally designated a bird sanctuary and closed to the public in 1934. It was renamed the Hallett Nature Sanctuary in 1986 after George Harey Hallett, Jr. (1896-1985), a prominent leader in New York City’s civic movement, and an ardent nature lover and bird watcher.

All the pictures of the sanctuary have been taken by Elena.

No more than 20 visitors may enter at a time.

Visitors must stay on the trails at all times.

Dogs, bicycles, skateboards, and rollerblades are not permitted.

There are no trash cans in Hallett Sanctuary. 

Please carry out what you carry in.

Entry hours are weather-permitting and subject to change due to maintenance.

Visit centralparknyc.org for up-to-date information about Hallett Nature Sanctuary.

Welcome to Hallett Open Hours: This ecosystem is a protected area and home to many flora and fauna, Central park’s woodlands, comprised of Hallet, the Ramble and North Woods, are prime-bird-watching locations.

As you enjoy your self-guided tour, please remember: Help Central Park Conservancy protect the plants by staying on the path. 

   Dogs, bicycles or strollers are not allowed. 

Please remember: Carry out what you carry in.

Managing public access to this unique landscape enables the Central Park authorities to foster a more diverse community of native plants than elsewhere in the park, enriching habitat complexity to support a broader diversity of wildlife.

Since 2003 as part of a program of the Central Park Conservancy, students have participated in landscape restoration projects and the creation of woodchip trails in Hallett, opening the landscape on occasion for special guided tours.

In connection with more recent work by the Conservancy as part of the parkwide woodlands restoration effort, Hallett is now open to the public during scheduled hours.

Come back soon to enjoy the Hallette Nature Sanctuary!