Indonesia’s Crisis: The Lesson for China introductionIndonesia, as we have long predicted, is coming apart. This process has a great deal of relevance to China, whose army, like Indonesia’s, was accustomed to making lots of money and now resents the fact that the good times are over. In both countries, making money became the basis for military loyalty to the regime, which in turn needed the army as guarantor. But in China, as in Indonesia, the military is no longer making money, and China has banned its officers from business. Now Beijing is creating international tension to soak up the military’s energy and resentment. But in the end, the guarantor of the regime can bring its death, leaving warlords poised to take power.
ANALYSIS
We have long argued that the Asian economic meltdown, as its ultimate legacy, would politically reconfigure Asia. We meant this in both the international and domestic sense: Nations would behave differently after the meltdown than they did during the past generation of extraordinary prosperity. The reconfiguration of Sino-American relations is an obvious manifestation of this. But it is the domestic political changes that are the most profound and will have the most impact on international relations. It should be obvious that an economic transformation of the magnitude we have seen cannot help but have equally dramatic political consequences.
Asia is obviously a diverse region. It goes without saying that the economic meltdown will affect Japan’s politics dramatically differently than Malaysia’s. However, events during the last week have drawn our attention to one area of commonality: the effect of the economic crisis on the military in China and in Indonesia.
These two countries are not usually lumped together; they differ in profound ways. But they share this: they have both used their military forces for three missions – protection against foreign enemies, enforcement of internal security and development of the economy. During the previous generation, the latter role became more and more important for both the Chinese and Indonesian militaries.
But Asia’s recent economic crisis, the states and circumstance have forced both militaries to de-emphasize their economic roles. Not only are the militaries not happy about this, but their unhappiness could destabilize their respective regimes. Quite apart from the truly disturbing prospect of an Asia dealing simultaneously with both Chinese and Indonesian instability, there are important lessons to be learned from the way in which each country used the military and the consequences of that use.
Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and stockholder’s equity (what is left over for the owners) (Fundamentals of Financial Accounting, 2006, p.7). The Income Statement shows whether a business made a profit (net income) during a specific period of time (Fundamentals of Financial Accounting, 2006, p. 10). The Statement of Retained Earnings illustrates what portions of the company’s earnings was paid to stockholders and retained by the company for future operations (Fundamentals of Financial Accounting, 2006, p.12). Finally, the Statement of Cash Flows reports summarizes how a business’ “operating, investing, and financial activities caused its cash balance to change over a particular range of time” (Fundamentals of Financial Accounting, 2006, p.13).
Post-Cold War Asia has been witness to a China that increasingly focuses its foreign policy on its neighbors rather than on a regional or global context. This stems from China's realization that free markets have triumphed over centrally planned economies and that a world revolution is not going to happen. This has two implications. One, China no longer needs to divert resources to involve itself in global politics since the proletarian revolution is not going to take place. Second, China needs to embark on a program of economic development and modernization (F. Wang p. 32 and J. Wang p. 80).
The article, “Here Be Dragons: Is China a Military Threat?” features a debate between the two authors, Aaron L. Friedberg and Robert S. Ross. The subject of the debate is simply; is China a military threat? Aaron Friedberg argues that China is a military “menace” that we should take as a serious threat while Robert Ross contends that China’s military threat is a “myth” that should be disregarded. The article concludes with a rebuttal from both authors, each offering a counter to the others argument.
Consolidated statement of profit or loss and other comprehensive income:- The purpose of this statement is to present total group earnings as a single entity without dividing the earnings attributable to nom-controlling shareholders and owners of the parent company. The revenues, expense and taxation of all companies included in the group are consolidated as a single entity regardless of the parents ownership in the subsidiary companies in order to provide results of the group as a whole. Similarly the entity concept is applied to consolidate all the components of other comprehensive income that are not permitted to be included in the profit or loss section. Consolidated comprehensive income is particularly useful when understanding the changes in the company’s fair value of assets.
In 1985 one fifth of the worlds population was living under military controlled governments (Harper's Index Book), and it may around half now since China so brutally squashed its citizens' move toward democracy (Harper's Index Book). The reunificat...
China Rising invites people to gauge the Rise of China and its effects particularly on the East Asian countries with a new lens. David Kang argues that China’s rise cannot be compared with western nations from the past and it certainly cannot be concluded that its rise would provoke instability in the region. Kang introduces that “identities are central to explaining source of stability and potential instability in East Asia.”
The collection of these three financial statements identifies the financial position of the corporation to help identify the way forward financially for the company. Once all of the data has been collected for the annual reporting the corporation can analyze the data through the different financial ratios including the liquidity ratio, the asset management ratio, and the profitability ratio.
... challenge to unrestricted U.S. global-economic-dominance is threatening to the U.S and its allies in Asia. The arguments detailed in this essay of China’s rise posing a threat to Asia’s stability are much stronger than the counterarguments. Case in point, China’s continued rise might begin to foster the idea of neo-Bismarckism and world hegemony. With a continued alliance with Russia and North Korea and a reduced U.S. military, it will be easy to accomplish world-dominance over the long run. If China keeps licking its fingers from their “sweet super-power emergence” it could be a matter of time before a new leader comes along with a new vision and ideology to divide and conquer. World supremacy is addictive in itself. Therefore, the U.S. and its regional allies should contain and restrain China to maintain Asia’s stability before it becomes too powerful to curtail.
As situations in the 21st Century features military operations largely being influenced by political decisions, the military sector should act more independently from their civilian counterparts. Since not many social and political elites are associated with military figures anymore, there is less chances for the politicians to understand matters of the military. It is military personnel that best understand what is happening in this country in terms of military related. Although the very own nature of National Security also heavily depends on political decisions, the growing civilian influence on military may not be as effective as if military had more control and power over its own
Given these sets of circumstances, china, Taiwan and United States have much to gain and even more to lose if an armed conflict erupts in the Taiwan Strait. All three countries have political, economic, and national security issues involved and united states and china are both in competition economic...
The directors need to be able to view the financial performance of the group in order to make relevant and informed decisions. In order to obtain this information the correct procedures, as mentioned, must be followed to ensure that assets are not overstated and liabilities
Zhang, Yongjin, and Greg Austin. Power and responsibility in Chinese foreign policy. Canberra: Asia Pacific Press, 2001. Print.
Moreover, for the single reporting entity, there is a variety of procedural steps that must be taken and understood in order to ensure the proper accounting. For instance, the starting point for the preparation of consolidated statements begin with the separate financial statements of the companies and after some adjustments and eliminations of amounts they are added together in order to create appropriate consolidated financial statements. Additionally, a few steps that can be taken into account to properly create consolidated financial statements are as follows:
In conclusion, there are many ideals and virtues that are instilled when one goes through formal military training, and these involve leadership, charisma, and a fair sense of judgment. All of these virtues can be shown in several developing nation's leaders as they themselves have gone through rigorous physical and mental training in order to help them better defend their country and its way of life. Though each leader may differ in terms of race, color, creed, or culture, their primary objective and ideologies are quite similar. While each leader has his or her country's best interest at heart when making policies and decisions that have long-standing ramifications, one can be assured that these leaders and their policies are based upon their firm military training.
Ng, Teddy. “Rise of China’s Military and Economic Power Leaves the Rest of the World Wary.” South China Morning Post. South China Morning Post Publishers. 20 Sep 2012. Web. 10 Mar 2014.