Business, Management and Economics Research
Online ISSN: 2412-1770
Print ISSN: 2413-855X
Print ISSN: 2413-855X
Quarterly Published (4 Issues Per Year)
Volume 1 Number 3 July 2015
Food Security and Adaptation Strategies to Climate Change in Eastern Ethiopia
Authors: Adugna Tafesse ; Gazahgne Ayele ; Mengistu Ketema ; Endrias Geta
Agricultural sector remains the main source of food and income for most rural communities in Ethiopia. Being dependent mainly on rainfall, this sector has been affected by climate change. Hence, employing adaptation strategies within the agricultural sector to climate change is vital to ensure food security and care for the livelihoods of farmers. Food security and adaptation are among the options to abate the negative impact of climate changes. This study has analyzed factors influencing the impact of climate change on food security and adaptation choices by farm households in eastern Ethiopia. The study used data obtained from 330 household heads randomly and proportionately sampled from two agroecologies in East Hararghe Zone of Oromiya Region and Dire Dawa Administration, Ethiopia. The study used a univariate profit model and multinomial logistic regression model to identify factors affecting food security and the choice of adaptation strategies to climate change. As food security indicator, calorie intake per adult equivalent per day was considered for adaptation strategies; changing planting date, irrigation water use, soil and water conservation, and crop variety selection were considered. The result indicated that farmers in the study area are vulnerable to climate change and the factors determining the choice of climate adaptation options were determined by sex of household head, family size, education status of household head, Agroecology, distance to market, cultivated land, credit access, decreasing precipitation and change of temperature. Policy thrust should focus on linking farmers to fertilizer usage, credit access and social participation as well as in creating awareness of climate change.
Fair Value: Diversity in Measuring Investments at the Net Asset Value (NAV) per Share
Authors: Dahli Gray ; Laura Rodriquez
This article analyzes a current financial reporting and accounting issue regarding diversity in financial reporting practice. Since the Financial Accounting Standards Board (FASB) first issued accounting statement 157 Fair Value Measurements, entities have been required to measure investments at fair market values. This included the requirement to categorize investments within a fair value hierarchy in preparation to report such in the financial statements. To do this, the FASB allows companies to either categorize the investment in the fair value hierarchy using three different input levels (Level 1, 2 and 3) or by estimating the net asset value as a practical expedient. If the entity uses the practical expedient, the investment would be placed within the fair value hierarchy based on whether the investment is redeemable with the investee at the measurement date, never redeemable, or redeemable in the future. Based on this information, the investment would be placed in either level 2 or 3 of the hierarchy. As a result, there is diversity in practice when estimating the length of time in the near term the investment would be redeemed. This article reports the results of evaluating how can the diversity in accounting practice related to how certain investments measured at net asset value are categorized within the fair value hierarchy be resolved. The results of the qualitative research conducted on the FASB proposal concluded that fourteen out of the eighteen public comment letters agreed with FASB proposal that eliminating the requirements to classify these investments in the fair value hierarchy would increase comparability in accounting practice among entities.