Romantic Era And The Byronic Hero English Literature Essay

Romantic Era And The Byronic Hero English Literature Essay The Romantic Era and the Byronic Hero. During the eighteenth and early nineteenth centuries, literature and art as well as political philosophy were deeply influenced by new ideas about individualism and citizen rights. The American and French Revolutions illustrate the power and volatility of these new ideas. Although the term Romantic wasnt applied to this period until many decades later, the writers of this period expressed a sense of collective intellectual energy that they called the spirit of the age.†It was a time for questioning the status quo, challenging conventions of social hierarchy, and elevating the value of the common man and woman. Romantic writers reflected on the beauty of the natural world as a means of discovering, illuminating, and articulating their own insights about human nature. Their writing frequently included scathing critiques of social injustices, mainly associated with growing urbanization; meanwhile, they idealized rural landscapes and lifestyle s. Many of these authors were profoundly influenced by Miltons poetic works, especially  Paradise Lost. For example, William Blakes  Songs of Innocence and Experience  juxtaposes poetic visions of the world first through the eyes of a child, or innocent, and then through experienced eyes that recognize sin and inhumanity as part of the human fallen condition. As mentioned in the readings, Blake argued that Miltons Satan was the true hero of  Paradise Lost, and many of his contemporaries agreed with him. Miltons Satan inspired a new figure in English literature: the Byronic Hero. In this lesson, we will read several defenses of this rebellious and misunderstood, tragic character. In particular, we will investigate how this figure informs Mary Shelleys famous gothic novel,  Frankenstein. During the Romantic period, the art form of the novel became increasingly popular, in conjunction with a growing reading public. Some of the most famous and influential novels of this era include Jane Austins satiric novels of sensibility and manners, Walter Scotts historical novels, and Mary Shelleys critique of science and society in  Frankenstein. Most of us are familiar with the monstrous figure of Frankenstein from popular culture: film and television images. Mary Shelleys original creature was conceived in the aftermath of the French Revolution and the subsequent bloodshed that shocked and disillusioned many of the initial supporters of this revolution. Note that the name Frankenstein refers specifically to the scientist, Victor Frankenstein, who created a living Creature. The relationship between Victor and the Creature offers a complex commentary on the duties and responsibilities of both a creator and the created, which invites comparisons with Miltons depiction of the rel ationships between God, Adam and Eve, and Satan. Shelley interweaves the Biblical narrative of the Fall in Genesis with the Greek myth of Prometheus, another creation myth about duty, betrayal and punishment. Furthermore,  Frankenstein  explores themes of pride and ambition by combining these grand epic narratives with Shelleys own personal experiences of procreation, parenting, and death. Lesson Four Reading Assignment Readings: In  Masters of British Literature  (Longman, Vol. B), skim â€Å"The Romantics and their Contemporaries†, (pp. 3-28). Also read: William Wordsworth, â€Å"The World is too much with us†; â€Å"London 1802† (231-2); â€Å"Manfred’ and Its Time: The Byronic Hero† (386-7); and Coleridge, â€Å"Satanic Pride and Rebellious Self-Idolatry† (392-3) In the Longman Cultural Edition of Mary Shelley’s  Frankenstein, please read Susan Wolfson’s introduction (pp. xvii-xxii) before you read the novel. Then read Mary Shelley’s  Frankenstein  (the 1818 edition). And, then read the excerpts in â€Å"God, Adam, and Satan† (301-322). Reading Questions: As you read the novel, consider the following questions: What is the effect on the reader of learning about Victor’s story through the third-person, Walton, and his letters to his sister? On page 34, Victor images the gratitude that his creation will feel towards him. How does he respond, on page 37, when he actually animates the body of his creation? How does Victors initial vision of being a creator differ from the reality throughout the rest of his tale? How would you describe Victors character? How is he perceived by other characters in the novel? At various points in the narrative do you find your allegiance shift from Victor to the Creature, or vice versa? Why might the author want the reader to feel sympathy for each of these characters? Traditionally, a novel will have a protagonist, or hero, and an antagonist, or villain. Who is the protagonist and who is the antagonist in this work? Consider how this narrative evokes the story of the Garden of Eden, the Forbidden Fruit of the Tree of Knowledge, the desire to be godlike, and the Fall from Grace. What is the effect of these allusions? How does this novel view science and the quest for knowledge? Does Walton learn anything from Victor’s tale? Is it significant that he acquiesces to his men’s desires to return to England? Lesson Four Writing Assignment Essay Assignment: Select one of the following essay prompts. After considering how you would answer each of the questions in the prompt, craft a thesis based on your answers and write a 5-page essay, supporting your selected topic. In Chapter VII of volume II, the Creature finds a bag of books, including Milton’s  Paradise Lost. How is the Creature affected by reading this epic poem as â€Å"true history† (98)? Shelley invites us to compare Victors creation with Miltons retelling of Genesis. How does this comparison influence our interpretation of  Frankenstein?  Is the Creature more similar to Adam or to Satan? Does Shelley’s novel encourage us to view Satan as a heroic rebel or the arch-fiend? Explain your answers with evidence from both  Paradise Lost  and  Frankenstein  and additional readings about the Romantic poets. Milton embellishes much of the Genesis story, but regarding the punishment of Eve, he restates the King James Bible text (Genesis 2:16) with almost no alteration or addition; Miltons God decrees to Eve: Thy sorrow I will greatly multiply By thy conception; children thou shalt bring In sorrow forth, and to thy husbands will Thine shall submit, he over thee shall rule. (Book X, lines 193-6) Mary Shelleys mother, Mary Wollstonecraft, was a famous feminist who died from complications of childbirth soon after Mary was born. Mary Shelley suffered miscarriages and the early deaths of several of her own children. Many critics hypothesize that Shelleys experiences of birth and death greatly influenced her creation of  Frankenstein. They argue that Victors obsession with creating a human represents a desire to possess and/or circumvent human reproduction. In your essay, connect Victors desire to supplant human procreation to Eves temptation to possess knowledge and become godlike. How are their transgressions similar and different? How are their punishments similar and different? You might consider the theory of the Fortunate Fall† in your discussion. Discuss how the Romantic Poets interpreted Miltons  Paradise Lost. Explain the political and social events that influenced their ideas about God and Satan.   Refer to at least two examples from the poets writings in the Reading Assignment, as well as the scholarly commentary.  Then, consider Mary Shelleys incorporation of  Paradise Lost  into  Frankenstein.   Does her adoption of Milton reflect or challenge the ideas of what Susan Wolfson terms Romantic Satanism (p 301 in the Longman Cultural Edition of  Frankenstein)?   In other words, how does Shelleys novel respond to the Romantic Poets interpretation of Miltons epic poem? Paradise Lost (Paradise Lost) revealed human sin and corruption. The poem describes the rebellious angels of Satan. Adam and Eve were possessed by Satan, ate the fruit from the tree of the knowledge of good and evil that God prohibited eating. Finally, Satan and his cohorts were turned into snakes. Adam and Eve were expelled from the garden of Eden. The poem reflects the poets freedom to pursue the lofty spirit. Satan had gathered many rebel angels under him. The poem describes how Satan and his angels fall into hell by the thunder and the heat of fire, after a while, he wakes from dizziness. Satan awakens all the same angles in Heaven, and they got up. Satan comforts them in the speech, inspiring them, finally he told them, according to an ancient prophecy or report in heaven, there is a new world and a new creature to be created. So they decided to hold a plenary session of the prophecy, and discussed countermeasures. At the beginning of the meeting, the first question is debated: it is necessary to take a risk of war to restore the kingdom of heaven. The final three take a proposal, which is Satan mentioned, to explore whether the prophecy or hagiography is correct. According to legend, the God is creating a new world and a new species, a creature with not much difference between them. The difficult question is who will be sent to do the difficult exploration. Their leader Satan alone bears the task, winning peoples admiration and applause. After the meeting, other members pursue pleasure randomly. In the journey of Satan through the hell gate, the door is closed, the person in charge of the gate talked with Satan. Finally, the man opened the door. Satan saw a big pit between the hell and the heaven, which is chaotic world. Under the guidance of the ordeal, he only went to see what hes looking for in new world. When Satan went into the new world, God seated on a throne saw. The God refers to the prophecy that Satan will seduce human, and his plot will succeed. Human beings are free, and there is resistance to temptation, sweeping all slander to justice, the ability of wisdom. He also claims; people commit crime because of many reasons. Satan is wandering edge of a wasteland for a while in the new universe. Seen from what is called empty border place, people and things soaring; then, he would fly to the sun. He first pretends to deform for junior angels, sincerely, to see a new world and live in one of these people. Under Youlies guidance, he flies to paradise. Satan finally reached the new world, and it landed in a survey of the garden of Eden place, where it has been close to his destination, he alone takes bold adventure, to be against God, man. The moment he got into all kinds of confusion, his heart occupies many strong emotions: jealousy, fear, despair and so on. But in the end he decided to implement the evil plans, along the radial paradise. He crossed the border, into a cormorant, squatting on the tree of life the highest office park, looking around. It is his first sight of Adam and Eve. His wonder at their beautiful appearance and the happy scene make him determined to make them fall. After eavesdropping on their conversation, knowing they were forbidden to eat the fruits from the park tree of knowledge, which can let them under penalty of death. He decided to start, entice them to transgress. He leaves here, trying to further understand the situation. As night falls, Adam and Eve want Gabriel to send an angel, sending two power ful angels to Adams house, to protect the sleep of Adam and Eve, lest suffering from evil. They found him on the ear of Eve, in her dream to seduce her. The devil was arrested on the spot, brought before Gabriel. When questioned, his attitude is very strong; but for the warning, flies out of paradise. After snooping the Satan has sinister motives, like a lost soul in the night and returns to paradise, into the inside body of sleeping serpent. In the morning Adam and Eve are out to work, and each person does the job by their own. Adam did not approve of it, worrying about the danger, which had been previously warned the enemy will seduce her at her when she was alone. Eve would not be as strong and decisive enough, so she wants to separate labor, to test her ability. Adam finally gave in. Seen her alone, snake skillfully came to her, close to her; at first look, then opening, said a lot of flattery, flattering her how outstanding she is. Eve, listening to what the snake spoke, became very curious, asking how he can speak like human beings, but also can also understand so well. The snake answered, that is because of eating fruit from a certain tree in the garden, which can also make people more rational. Eve asked him to have a look of that tree. She looks, what is unexpected is tha t this tree is the right tree of the knowledge that the God forbids her to eat. The snake is of strong courage, using many reasons to persuade her to try. She finally tries, feeling very delicious. She thought to let Adam have a taste of this thing. But she hesitated, finally decided to give him this fruit, and advised him to eat. Adam was frightened at first because this is forbidden. But finally he decided to eat the fruit. The forbidden fruit in the two persons takes effect, they feel ashamed; and they find something to cover their nakedness. Then two people quarrel with one another. God said: they are unable to prevent Satan going into the park. Sin and death, sitting in the gate of hell, are excited to find Satan succeeds in the new world of conspiracy, so they are determined to follow their father Satan. They followed their path according to Satan, building a road or bridge on the chaotic world. As they prepare to leave back to hell, they meet Satan, returning after a conceited triumphant. Satan successfully indulges in verbiage before all the people for human conspiracy. Audience only applauds. And they, like in the paradise, are suddenly transformed into a snake. In their eyes, the scene of the forbidden tree appeared, they stretched to pick the fruit, but full of dust.Sin and death still continue their work. Adam came to know of his degraded condition, deeply sad, and Eve comfort is also rejected by him. Eve adheres to persuade him. In order to avoid the curse fallen to his descendants, she advised Adam to use violence; he strongly opposed, but reminded her of her sons to revenge snake, thereby holding good hope, encouraging her to pray with him to appease the anger of god. Then Satan, in the snakes image, committed a terrible, hateful deception behavior in the garden. Milton has been very clever in describing this story. He uses the story to deliver a spirit of freedom. And he makes full use of this story to show his ideas.

Comparing Hap by Thomas Hardy and The Second Coming by Yeats Essay

Comparing Hap by Thomas Hardy and The Second Coming by Yeats      Ã‚   Thomas Hardy (1840-1928) was one of the great writers of the Late Victorian era. One of his great works out of the many that he produced was his poem Hap, which he wrote in 1866, but did not publish until 1898 in his collection of poems called Wessex Poems. This poem seems to typify the sense of alienation that he and other writers were experiencing at the time, as they "saw their times as marked by accelerating social and technological change and by the burden of a worldwide empire" (Longman p. 2165). The poem also reveals Hardy's own "abiding sense of a universe ruled by a blind or hostile fate, a world whose landscapes are etched with traces of the fleeting stories of their inhabitants" (Longman p. 2254).    The poem's major theme seems to be this sense of the world being ruled by a hostile and blind fate, not by a benevolent God pushing all of the buttons. This is clearly stated within the poem itself as Hardy writes "If but some vengeful god would call to me / From up the sky, and laugh: 'Thou suffering thing, / Know that thy sorrow is my ecstasy, / That thy love's loss is my hate's profiting!' / Then would I bear it, clench myself, and die, / Steeled by the sense of ire unmerited; / Half-eased in that a Powerfuller than I / Had willed and meted me the tears I shed. / But not so." (Hardy, Longman p. 2255: ll. 1-9). As you can see, this poem shows that Hardy has indeed lost all faith in a benevolent God that deals out suffering and joy to his creations as he willfully deems they deserve and need. Instead of this idea of a benevolent God up above pulling all of the strings of the world and dealing out everyone's personal fate, Hardy believes fate is... ...and present as a sign that the 'Beast' is about to be born and rule the next 2000 years just like Jesus was born and resurrected to rule the last 2000 years, while Hardy just relates the evils and pain that is inflicted on man as a sign that there is no benevolent God, but not that there is an evil God staking his claim to our lives now enstead. He leaves our fate up to mere chance and the passage of time, while Yeats leaves our fate up to the beast (also known as Satan).    Works Cited Bressler, Charles E. Literary Criticism. New Jersey. Prentice Hall, 1999. Damrosch, David, et al., ed.   The Longman Anthology of British Literature: Vol. B.   Compact ed.   New York: Longman - Addison Wesley Longman, 2000. Yeats, William, Butler. "The Second Coming." The Longman Anthology British Literature. Ed. David Damrosch. Longman. New York. 2000. 2329.   

Harmful Effects of the Atkins Diet Essay -- Exploratory Essays Researc

Harmful Effects of the Atkins Diet It is safe to say that the Atkins Diet is not as harmless as everyone would like to think. Originally, the disadvantages were not taken into account because desperate dieters were interested in partaking in a seemingly easy way to lose weight. However, plenty of negative side effects have been shown to support the fact that the Atkins plan is more harmful than people realized. These negative side effects range from headaches and dizziness, to the more severe reactions consisting of kidney and heart problems. These negative effects are caused primarily by a lack of carbohydrates in the body, which results in an increase of ketones, or poisonous chemicals. And, as it turns out, many organizations including The American Heart Association, support the fact that these effects do occur after following the Atkins dieting plan. The American Heart Association, specifically, has said that the decreased intake of carbohydrates and an increased ingestion of proteins and fatty foods does no t conform to their dietary guidelines and can lead to seriously negative results and health risks. The less severe disadvantages surrounding the diet consist of physical weakness, low energy level, slower reaction times, headaches, and dehydration. These less dangerous, yet clearly relevant reactions are due to the elimination of carbohydrates from the diet. Blood sugar levels become very low when carbohydrates are not ingested, causing physical pain and weakness as well as a slower reaction time. Headaches also occur as a natural response mechanism that act as signals for the body that carbohydrates are needed in order to prevent further problems. Moreover, when the body breaks down stored fats t... ...eats and creams sounds, it undoubtedly raises health risks involving the heart. Without a doubt, the Atkins diet causes health problems. Be it mild or severe effects, the problems and risks are there. It is difficult to believe that a diet where cream, butter, mayonnaise red meats, and numerous other fatty foods are unlimited could actually be healthy and result in positive weight loss. Ridding the body of obviously healthy foods such as complex carbohydrates can only lead to negative side effects for the dieter. While dieters have the advantage of choosing a plan that is best for them, these serious health risks are something that should be taken into account. In the end, it is a healthy, well balanced diet, consisting of a good amount of exercise that is the key to a healthy lifestyle no matter which way you slice it.

The Iliad of Homer Essay -- essays research papers

The Iliad is the quintessential epic. It is full with gods, goddesses, heroes, war, honor, glory, and the like. However, for just short while near the very conclusion Homer avoids all of those epic qualities. The banquet scene in Book XXIV is the most touching, the most â€Å"human† scene in the entire poem . In the midst of the dreadful gulf of war and anger there occurs an intimate moment between two men who ironically have much in common below the surface. Priam, old and fragile, makes his way to the camp of the enemy’s greatest warrior late at night. He bears what little treasures have not been exhausted by the ten-year conflict and plans to plead for the rightful return of his son’s body. This is his final heroic endeavor. And perhaps, because he has just lost someone so dear to him, he is willing to take the risk despite his fear. What is interesting is that when he does arrive at the camp of Achilles, his fear suddenly subsides and â€Å"the old man makes straight for the dwelling where Achilles beloved of Zeus was sitting.† A decisive moment has arrived for both men. When Priam enters, Achilles knows that he must accept his own death with open arms while Priam is forced to sit at the knees of Achilles and kiss the hands that have killed his beloved Hektor. Homer seems to stop the action for a moment to let us feel the intensity of this extraordinary encounter. Priam urges Achilles to think of his own father and then pity Priam in his outrageous position, a king "who must put my lips to the hands of the man who has killed my children." Achilles immediately accepts Priam’s appeal and the two weep for their sons, fathers, and friends. This sharing of common grief becomes a bridge back to human sympathy. In an amazing speech Achilles soothes Priam's sorrow by painting a picture of their common misfortune and the inevitable limits of mortality. He reminds Priam that â€Å"there is not anything to be gained from grief for his son.† â€Å"You will never bring him back,† he says, â€Å"sooner you must go through yet another sorrow.† Though Achilles has matured dramatically since the beginning of the Iliad the complexities of his character don't disappear instantly. Priam asks not to be seated so he can more quickly attend to the return of Hektor. Suddenly Achilles' anger flashes out. Though his insight and human compassion have developed greatly he is still obstinate an... ...an lot he portrays is grim, his actions show a human decency that somehow softens our sense of what it means to be human NOTE: Observe how the plot structure of the Iliad completes itself. In the first book, a father (Chryses) comes to Agamemnon to plead for the return of his child but is refused. In the last book, a father (Priam) also pleads to Achilles for the return of a child; this time pity is shown. Though this symmetry is surely there, Homer is an artist who permits complexities and contradictions. As you begin to sum up your feelings about the Iliad, test all the threads. The question is not simply is Achilles right or wrong, or are the Trojans or Argives the real heroes. Homer values both cultures. He sees meaning in the heroic code but he also sees its shortcomings. In that same way, he pictures the horrible sufferings of a world at war and yet shows us the human dignity that can shine through. In the beginning Apollo says that mortals maneuver through Destiny with "the heart of endurance." That is where the Iliad begins and ends. It is ironic that Achilles is young and strong and in his prime while Priam is way past his and yet Achilles is nearer to death.

To Be an Iskolar Ng Bayan

â€Å"Solar Eng banyan† are words which will forever be linked to each one of us studying here In this university. They are usually just accepted by students absent-minded, without truly understanding the weight of being an â€Å"solar Eng banyan†. Usually, for most people, what It meaner to be an â€Å"Solar Eng banyan† Is simply to be a student In the state university, the premier university in the country. However, that meaning is not all there Is to it: it's the tip of the iceberg to what an â€Å"ISO/ask† stands for.What most people forget Is that the term â€Å"Solar Eng banyan† Is actually a literal description f what UP students are: we are scholars of the country. Here in UP, we often see students fight and protest for d higher budget for education from the government because this would directly affect every single one of us kiosks and asks. A part of the annual education budget tot the country Is meant to subsidize our up talon. The relati vely low tuition fee here in UP is due to the fact that our government pays for some chunk of our supposed tuition: therefore what we have to pay for ourselves is a lower fee.However, looking at things In perspective, It Is not really the government hat subsidizes us. The money of the government comes from the Filipino people. Our countrymen, so we owe our education to them. Their money Is used to allow us to study here, therefore we are their scholars; we are scholars of our countrymen and of our country, hence the term â€Å"Solaris Eng banyan†. With that in mind, we have to remember that it is not only our parent's' money that is wasted every time we skip our classes, every time we fail our exams, or every time we have to retake our subjects.We may not feel guilty for wasting our parent's' money, but we should keep In mind hat we are also wasting our fellow Filipinos money. For example, our tuition may have been partly paid by a hardworking father, who does his Job faithfu lly and honestly every day, but the salary he is able to take home to his family is not enough because tax was deducted trot it, tax which was used tort government subsidy tot UP students. Instead of being able to provide his family with enough to eat, his money went to us, to be able to pay for our tuition.We should at least have the decency to be ashamed of wasting the money given to us, mandatory, by our countrymen. This s the reason why UP wants the â€Å"cream of the crop†, the best students in the country, because they wouldn't want to waste the Flossing' money. They know that with good students, the things taught in the classroom would not stay in the classroom, but would stick to the students' minds. UP wants to produce graduates Witt nor and excellence. It is better if we all realize this at once, so we don't call ourselves â€Å"Kiosks and asks† Just to say we are one of the best students this country has.Let's live up to that name, to being â€Å"Solaris En g banyan†, and living up to It doesn't stop once we have radiated. It is important to remember that our country has invested in us by allowing us to be scholars. They expect a return of their Investment. Lets make their investment worth It. They are paying for our education so we could hopefully make their quality of life better, so we could make this country better, That is the real just doing well in school and getting high grades. Being an â€Å"solar Eng banyan† is taking what you learn in the classroom and using them to return the favor given to us by our countrymen.

My Life in College Essay

My Life in College BY arce1921 My Life I am attending this college success class due to the fact I had very poor grades in my previous semesters. I have been attending Palo Alto College for about four years now off and on of course. After four years of college I wish my GPA was more worthy to show to others. After the first semester of college I still was undecided on my major and what I wanted to do with my life. I took a liking for the arts when I was in high school. During high school I was attending an art program called Say Si (San Antonio Artistic Youth) I attend this program all through my high school years. After graduating from this program I was offered a Job in their ABC (artist building communities) program. In this program I was able to mentor children that have no art programs in their current school. We also would teach at different types of children shelters and children hospitals. I enjoy teaching very much, I was looking into teaching art in a school district. But after teaching for 4 years I think it takes a special person to teach little kids. I really don’t have the patiences for teaching 2nd and 3rd graders. I current teach but only older kids. Two semesters have passed and I lacked off on my school and I was going through a rough time in my life with my family. I picked up a second Job due to the fact my teaching Job was only two days out of the week. I started working in the learning about cars and how they work. But after awhile my school schedule did not fit into my work schedule. My boss would give me a hard time about my school life all the time. I had the craziest schedule while working with auto parts. I would go to work in the morning and go to school during my lunch break and I would also go to school after work as while. This was everyday for almost a year and six months. It was two uch for me and I had to withdraw from all my classes and it went down hill from that moment on. I current have a new Job still working with kids but its more personal. I started working for a company called Roy Maas Youth Alternative . This organization houses in children taken by cps custody and probational children. I really enjoy my current job it makes me feel great helping these kids . A lot of these kids come from broken homes and bad backgrounds . Talking to these children helped me decide what I want to do with the rest of my life. I want to pursue social work as my career. This semester is going to be my new turning point in life. I finally have no trouble with my Job or my family. This is going to be the right time for me to get my grades back up to were I want them to be at . I also will start making more time to study and less time slacking off. Teaching art will still be part of my life and hopefully I can squeeze it into my new career. tutoring department to my advantage . I never did go to tutoring in the past semesters, maybe if I took some time out to go I would have done much better in my classes. I am looking forward to keeping my education on track and not derailing off my prize which is to receive my masters in social work.

Ifrs 10 Application to Hyundai and Kia

————————————————- ACCT333 Advanced Financial Accounting ————————————————- Group Project Assignment (IFRS 10) Cheong Wang Shen Gordon Prepared for: Prof Bernardine Low Prepared by: Gordon Cheong Wang Shen Jason Tan Zhu En Twain Teo Wei Ren Wee Huixiang (G4) Table of Contents Question 1: IFRS 10 flowchart3 Question 25 (a) Identifying ambiguity of control5 Background5 Control issues5 Co-owning of subsidiaries5 Inter-company director relations6 Same platform manufacturing6 b) & (c) Application of IFRS 10 flowchart to determine existence of control by Hyundai7 Step 1: Determine the purpose and design of investee (Kia)7 Step 2: Determine relevant activities7 Step 3: Determination of ability to direct relevant activities8 Step 4: Determine if exposed to variable returns9 Step 5: Determine if Hyundai is a principal or an agent10 Question 310 Identification of four requirements in IFRS 10 that are challenging to interpret and apply10 Considering the purpose and design of the investee10 Determining the relative size of voting rights11Considering related parties12 Determining if investor is a principal or agent12 References14 Question 1: IFRS 10 flowchart Question 2 (a) Identifying ambiguity of control Background The Hyundai Motor Company (hereafter referred to as Hyundai) is a multinational automaker based in Seoul, South Korea. Hyundai is one of the two best-known divisions of the global conglomerate Hyundai, the other being Hyundai Heavy Industries, the largest shipbuilder globally. A famous Korean businessman, Chung Ju-yung, founded Hyundai in 1974.Following the Asian Financial Crisis in 1997, Hyundai bought over Kia Motors Corporation (hereafter referred to as Kia) in 1998, which resulted in the formation of the Hyundai Kia Automotive Group (HKAG) . It consists of multiple affiliated companies related through complex shareholding agreements, although Hyundai is taken to be the de facto representative in transactions done with HKAG. During the acquisition of Kia in 1998, Hyundai out-bidded Ford motors to acquire 51% of the company’s shareholding. After a series of divestments over the years, the total ownership of Hyundai in Kia has been reduced to only 33. 5%. Hyundai and Kia are both listed individually on the Korean Stock Exchange. In 2008, Hyundai was ranked the 8th largest automaker in the world. It was also the fastest growing automaker globally for 2 consecutive years (2010 and 2011). The chairman and CEO of Hyundai is Chung Mong-koo, one of the surviving sons of Chung Ju-yung. Control issues Hyundai currently has a 33. 75% direct shareholding in Kia, with the remaining shareholdings being presumably widely dispersed. As such, it evidently has significant influence over the operations and running of Kia’s business.However, establishing direct control between Hyundai and Kia is not as straightforward. There are a number of issues that we have to look at. Co-owning of subsidiaries Hyundai and Kia co-own a large number of subsidiaries. As evidenced by the 2010 consolidated financials of Hyundai, the global branches of the Kia Motors Group are 100% held by Hyundai through Kia themselves. Both companies also have percentage ownership in Hyundai’s various component manufacturing companies like Hyundai HYSCO Company Limited and Hyundai Powertech Company Limited.Aside from this, they also have holdings in Autoever Systems Corporation, where their main Research and Development unit is located. Inter-company director relations The current Chairman and CEO of HMC is Chung Mong-koo. He took over Hyundai in 1992 when the Hyundai Group split into its various divisions. The Hyundai group itself follows a South Korean Business form of conglomerate known as chaebol, where the unique characteri stic is that it is usually a huge family controlled corporate group.As such, it is not surprising to see that many of the third generation members of Chung Ju-yung’s family are heading many of the different divisions of the Hyundai Group. Chung Mong-koo’s only son, Chung Eui-sun was a key operating officer in various corporate planning divisions in Hyundai-Kia before eventually heading Kia as its president from 2005 to 2009. Currently, he is the vice chairman of Hyundai and is on the internal board of directors for Kia. Aside from this, Chung Mong-koo also has a 5% shareholding in Kia. Same platform manufacturingBoth Hyundai and Kia co-own manufacturing subsidiaries that produce component parts to both companies. As a result, their production facilities get the similar component parts from the same suppliers. The companies also use the same power trains (engines and transmissions) all manufactured largely from the Hyundai Powertech Company Limited. A majority of the au tomobile electronic components from both brands also come from Hyundai MOBIS Limited. Both these companies are co-owned subsidiaries of Hyundai and Kia. Both Hyundai and Kia also share design studios.In fact, the vice president of design based in HMC actually oversees the design management of both brands. The family controlled heading of both Hyundai and Kia allows us to consider the possibility of Hyundai having a controlling influence over Kia, especially with Chung Eui-sun’s dual positions on both companies’ board of directors. Furthermore, given the fact that both companies virtually sprout from the same supply chain, and control over their research and development and design of the vehicles are headed by staff based in Hyundai, we can see hat these revenue generating activities greatly affect the business operations of both companies. Even though Kia is clearly not a subsidiary at first glance, given the meagre 33. 75% ownership by Hyundai, it would appear that Hy undai may be exerting more than just significant influence over Kia through the various factors mentioned. (b) & (c) Application of IFRS 10 flowchart to determine existence of control by Hyundai Step 1: Determine the purpose and design of investee (Kia) Hyundai purchased shares in Kia for 1. 18 trillion won in November 1998.The purpose of this acquisition in Kia is for Hyundai to gain significant foothold and widen its market share in the auto industry. By taking over Kia Motor, the Hyundai-Kia group was able to forge a solid position having over 70% of domestic market share and become the 7th or 8th global automaker by combining its affiliates’ production capacity into the total volume of 2. 9 million units in 1999. Step 2: Determine relevant activities Activities| Does it significantly affect investees’ returns –> relevant activities? | Example of decisions about relevant activities| How decisions about relevant activities are made? Research and development| Y es| Reduce the number of platforms to 718 by the end of 2005, in order to save the costs of product development and manufacturing and produce a variety of car models having differing external styling and interior options for the brands of Hyundai and Kia| Decisions are made by a joint R&D Division led by the Chief Technology Officer (for Hyundai and Kia combined)| Auto-assembly| Yes| Which type of vehicle that each plant should produce? Whether Hyundai and Kia should share power-train parts (i. e. engine and transmission) to be supplied to assembly plantsWhether Hyundai and Kia should share production technology| Decisions are made by top management of the Hyundai-Kia group, where the de facto representative is Hyundai| Auto parts supply| Yes| Which vendor should supply auto parts to the companies? How many vendors should they engage? | Decisions are made by Joint Material Handling Division that Hyundai and Kia set up| Marketing and competition| Yes| Whether to focus on price or non price competition such as customer service and product quality| Decisions are made by top management of the Hyundai-Kia group|Step 3: Determination of ability to direct relevant activities Hyundai owns 33. 75% of the shares in Kia Motors. In addition, Chung Eui-sun, the son of the Hyundai Motor Group Chairman, owns another 1. 73% of the shares. This presumably gives Hyundai control of 35. 48% of Kia Motors, which is significantly less than the 50% shareholding that would give Hyundai the majority of the voting rights. However, we are unable to find any evidence that anyone has control of a large proportion of the remaining shares, and thus we feel that the assumption that the rest of the shares in Kia are highly dispersed is a reasonable one.If that is the case, then it is almost impossible that all these shareholders will collectively outvote Hyundai when a decision needs to be made, so Hyundai can be said to have power over the relevant activities. Another factor to consider is t hat Mr Chung is both the vice chairman of Hyundai and an internal director of Kia. As Mr Chung sits on Kia’s board, he should have a certain amount of influence over Kia’s decision-making process. This factor, coupled with Hyundai’s holding of voting rights, lend much weight to the claim that Hyundai can direct the relevant activities.Last but not least, we notice from the table above that the Hyundai and Kia managements jointly make most decisions regarding relevant activities. In fact, Hyundai and Kia share almost the same supply chain. Many companies in the supply chain are subsidiaries or associates co-owned by these two parents. However, because Hyundai owns a larger portion of shares, and hence voting rights, in most of these entities, Kia is understandably at risk if it goes all out to oppose Hyundai in some way or another.It can be seen that when decisions are made, Hyundai is better represented because of both the presence of its management and its voti ng rights, and Kia would tend to concede ground to Hyundai when there are disagreements. So, even though Hyundai owns less than 50% of the shareholding in Kia, they probably still have enough power to direct the relevant activities. Step 4: Determine if exposed to variable returns If Hyundai has actual control of Kia, they will be exposed to returns, which can be positive, negative or both.Also these returns must be variable rather than fixed. The returns that Hyundai is exposed to can be classified into two categories: 1) Returns not available to other interest holders. This refers to cost savings and synergies that arise from Hyundai owning Kia, which other shareholders in Kia would not be entitled to. In this case, they are mostly in the form of cost savings, due to the similar operations of the two companies. Consolidation of R&D centres of Hyundai and Kia, sharing of R&D centres allowed both companies to lower costs by reducing number of employees in the R&D centres * Products share similar core platforms leads to savings and economies of scale * Sharing of factories leads to further specialisation, for example, Kia’s Kwangju plant was designated as a specialised assembly plant for small-sized commercial vehicles for both Hyundai and Kia, leading to cost reduction * Sharing auto-part suppliers to apply greater pressure on suppliers for cost savings on supplies 2) Dividends Kia paid out 96 billion won in dividends in 2010 * Hyundai’s ownership of common stock entitles them to receive dividends from Kia. Thus, it can be seen that Hyundai meets all our requirements that would allow it to classify Kia as a subsidiary. Our last step would be to ensure that Hyundai is acting in the capacity of a principal, rather than that of an agent, which is holding delegated power. Step 5: Determine if Hyundai is a principal or an agentIn determining whether Hyundai is acting as a principal or an agent, we need to consider four factors: 1) Scope of decision ma king authority * Unable to find information proving that Hyundai has any limits to the decisions it can make for Kia * Presumably, Hyundai can make most decisions for Kia 2) Rights held by other parties * No evidence of rights held by other parties 3) Exposure to variability of returns from investees * High cost savings due to economies of scale Many of Hyundai’s subsidiaries depend on Kia for revenue * Affected by dividends paid out by Kia 4) Remuneration * Almost solely dependent on dividends, which are highly variable * No actual fixed remuneration In consideration of all the four factors, Hyundai is most likely a principal and not an agent. Hence we can reasonably conclude, after thorough application of the framework, that Kia is a subsidiary of Hyundai. Question 3Identification of four requirements in IFRS 10 that are challenging to interpret and apply Considering the purpose and design of the investee Paragraph B5 of IFRS 10 explains that â€Å"when assessing control o f an investee, an investor shall consider the purpose and design of the investee in order to identify the relevant activities, how decisions about the relevant activities are made, who has the current ability to direct those activities and who receives returns from those activities†.Paragraphs B51-B53 then goes on to explain the factors to be considered when determining the purpose and design of the investee. However, IFRS 10 does not explain how the purpose and design of the investee can be used to â€Å"identify the relevant activities, how decisions about the relevant activities are made, who has the current ability to direct those activities and who receives returns from those activities†, which paragraph B5 suggested. A simplistic scenario is given in paragraph B6, whereby the investee is controlled by means of equity investments.Beyond this straightforward case, paragraph B7 directs readers back to the factors listed in B3 to determine control (relevant activities , ability to direct relevant activities, variable returns and ability to use power over investee to affect returns). Furthermore, the factors provided in paragraphs B51-B53 are hard to determine and require much professional judgment. For instance, paragraph B51 states that in the process of assessing the purpose and design, we â€Å"evaluate whether the transaction terms and features of the involvement (at investee’s inception) provide the investor with rights that are sufficient to give it power†.No conclusive elaboration is provided by IFRS 10, and it is uncertain whether being involved in the investee’s inception signifies control. This creates much ambiguity and inconsistent interpretation across firms. Rather than making it seem like an isolated step with little purpose, IFRS 10 should provide clearer guidance for the objective of determining the purpose and design of the investee. Clearer linkages, between the consideration of purpose and design of invest ee and the other factors to be considered when determining control, could also be provided to improve the flow of IFRS 10.Furthermore, more comprehensive and conclusive guidelines could be included to standardise the interpretation of the purpose and design of the investee. Determining the relative size of voting rights According to paragraph B42, an investor can consider the size of its holding of voting rights relative to the size and dispersion of other holdings of the other vote holders to determine whether its rights are sufficient to give it power. However, because relativity encompasses the use of personal judgement, this section may be open to manipulation.In Hyundai’s case, it holds around 35% of the voting rights, including those held by its vice chairman, Chung Eui-sun. If the rest of the voting rights are very widely dispersed, with nobody else holding more than 1%, Hyundai can say that it has control because it is very improbable that all the other parties will c ome together to collectively outvote Hyundai. On the other hand, Hyundai can also claim that there is still a possibility that the other shareholders will collectively vote against Hyundai if it introduces a policy that does not benefit them, so in that case, Hyundai does not have control.We notice that the voting structure remains the same, yet different interpretations can be derived. Paragraph B42 also says that other circumstances, such as voting patterns at previous shareholders’ meetings, can be considered, but it is hard to say if the historical patterns are able to predict the future. Shareholders might not have voted in previous meetings because there were no major decisions that affected them, but if Hyundai intends to propose something revolutionary, the voting situation will definitely change.IFRS 10 can provide more detailed guidance to ensure that this section is applied appropriately and consistently. For example, when determining how widely dispersed the rest of the voting rights are, an investor should consider only the next 10 largest shareholders. If their combined holding is larger than that of the investor, then the investor does not have control based on this requirement alone. When assessing previous voting patterns, the investor should only look at shareholders’ meetings where issues of similar impact were raised.If previous meetings did not encompass such issues, then the voting patterns for those meetings cannot be considered. Considering related parties Paragraph B18 states that an investor can consider whether the investee’s key management personnel are related parties of the investor when determining if the investor has the practical ability to direct relevant activities unilaterally. However, it does not specify how much influence the related parties must have over the investee, so this may not always be a good indicator of power.For example, Hyundai’s vice chairman, Chung Eui-sun, is also on Kiaâ€℠¢s internal board of directors. According to paragraph B18, this should provide evidence that Hyundai has power over Kia. But in order to determine whether Hyundai can direct relevant activities through Chung Eui-sun, we must also consider the amount of influence that he has over Kia’s decision-making process. Kia has 9 directors on its board, of whom two are also presidents in the company, so Chung Eui-sun may not always have his way. If the investor does not take this into consideration, then the determination of control would be flawed.In that sense, this requirement would be more complete if guidance on the influence commanded by related parties was given. Instead of only determining whether there are related parties in the investee’s governing bodies, the investor should also take into account the role and power of the related parties. If the related parties have the final say when it comes to decision-making over relevant activities, then this factor can conclusi vely determine that the investor has power. But if the related parties do not have the final say, then only a minimal weight should be placed on this factor.Determining if investor is a principal or agent Being able to determine if the investor is a principal or an agent is crucial to determining whether the investor has control over the investee. A principal would have power over the investee, but an agent would only have delegated power. Delegated power is held on behalf of a third party who ultimately controls the investee. The method prescribed in IFRS 10 for determining if a decision maker is an agent is the consideration of the factors listed in paragraph B60.Upon further elaboration of the factors, IFRS 10 provides certain cases where the investee is definitely a principal or an agent. For example, paragraph B70 states that â€Å"a decision maker cannot be an agent unless the conditions set out in paragraph B69 (a) and (b) are present. † However, if none of these extre me conditions are met, we must assume that we would have to take all five conditions into account when trying to decide if the investor is an agent. However, there is no prescription in IFRS 10 about how to consider these conditions.In a situation where some of the conditions point towards the investor being an agent and some point towards them being a principal, there is a certain amount of ambiguity in whether the investor should be classified as a principal or an agent. This gives the company some leeway in choosing the decision that would reflect a better financial position of the firm. This could lead to reduced accuracy of financial statements and less comparability among financial statements of different companies.To make this requirement easier to interpret and apply, IFRS 10 should clearly state the relative importance of each factor. For example, the factors which are given a higher relative importance would have a higher influence on whether the company is a principal or an agent, as compared to those with a lower importance. As such, in ambiguous cases, companies will know which factors should be considered first. Given this, all companies will have more similar definitions of principal/agent, thereby reducing the ambiguity and increasing comparability among different financial statements.References 1) Hyundai 2010 Annual Report http://worldwide. hyundai. com/company-overview/investor-relations/financial-information-Annual-Report-view. aspx? idx=13&&nCurPage=1&ListNum=11 2) Kia 2010 Annual Report http://www. kmcir. com/eng/library/annual. asp 3) Merger and Reconfiguring of Hyundai-Kia (Byoung-Hoon Lee, Sung Jae Cho) http://gerpisa. org/rencontre/9. rencontre/S13Lee-Cho. pdf 4) HYUNDAI MOTORS’ DE-CHAEBOLIZATION EFFECTS (Hyunjoong Jun) http://gerpisa. org/rencontre/9. rencontre/S13Jun. pdf