Cultural treatment of promiscuous women and illegitimate children

Cultural treatment of promiscuous women and illegitimate children The headline read, One out of 12 in America Held to be Illegitimate; Issuance of Partial Birth Certificates Proposed to Avoid Embarrassments (Staff, 1944, p. 4). The assertion conjures a mental image of hundreds of decadent, low socioeconomic status, immoral women and her filius nullius (Latin term meaning, son of nobody). Parents of the single, gravid woman were shamed, mortified or disgusted by the sexual promiscuity of their daughter; how they could face their friends after learning of the daughters transgression? Is this the first era of social stigma related to a child borne by an unmarried woman? The samplings of historical data below indicate no. The Bible speaks often to a debauched woman and her bastard offspring. For example, Galatians 5:19-21 (English Standard Version): 19 Now, the works of the flesh are evident: sexual immorality, impurity, sensuality, 20 Idolatry, sorcery, enmity, strife, jealousy, fits of anger, rivalries, dissensions, divisions, 21 Envy, drunkenness, orgies, and things like these. I warn you, as I warned you before, that those who do such things will not inherit the kingdom of God. Figure Lillian Gish (1926)In 1850, Nathanial Hawthorne wrote the Scarlet Letter. Set in a Puritan colony, his central character Hester Prynne, gave birth to an illegitimate daughter because of an adulterous affair. Hester was publicly shamed and forced to wear a red letter A on her chest, identifying her as an adulterer. She experienced cruelty, humiliation, and ostracism from the people of the community. She eventually realized the fortitude of her spirit. The novel is 160 years old, yet the moral dilemmas of personal responsibility, and consuming emotions of guilt, anger, loyalty and revenge are enduring. Unfair treatment and the stigma really permeate all aspects of society. Its still expected that people will marry and that theres something weird about you if you dont. Thomas Coleman In the year 1944, when the above article appeared in The Pittsburgh Press, the institution of marriage before parenthood was the virtuous and accepted way of life. Women were expected to love and obey their husbands. bas ·tard (basà ¢Ã¢â€š ¬Ã‚ ²tÉâ„ ¢rd) noun a person born of parents not married to each other; illegitimate child anything spurious, inferior, or varying from standard Slang a person regarded with contempt, hatred, pity, resentment, etc. or, sometimes, with playful affection: a vulgar usage Etymology: ME Vocabulary to describe the child borne of an unmarried woman varies throughout literature. Bastard is the most prolific term used in the earliest writings. A bastard is a person born out of wedlock whose father is not listed on the birth certificate and legal status is illegitimacy. Bastards had no right to inherit property from his or her parents except through a will. In the mid-20th century, discrimination against children born out of wedlock became subject to constitutional limitation under the provisions of the Fourteenth Amendment (Columbia, 2009, p. 1). Illegitimate, love child, whoreson, spurious; terminology referring to the child borne of an unmarried mother may be perceived as vilifying the child. The mother, whos referenced by the terms unwed, unmarried, or single, was a pariah. Often, the pregnant single woman was scuttled off to a residential home for unwed mothers. The occurrence of out-of-wedlock births has been rising over the past 70 years. In the 1940s, fewer than five percent of the total births were out of wedlock (Ventura, 2009). In the 1940s and 1950s, unwed mothers were strongly encouraged to give their children up for adoption. Commonly, an illegitimate child raised by grandparents or married relatives believed the unwed mother was his sister or he was her nephew. Between 1940 and 1960, the escalation of out-of-wedlock births was subtle. Since the 1970s, increases in the number, rate, and ratio of out-of-wedlock births have been dramatic. In addition, the size of the unmarried population has increased as a result of the high birth rates during late 1940s through the early 1960s, along with the unprecedented deferment of marriage by the baby-boomers (U. S. Department of Health and Human Services, Public Health Service, Centers for Disease Control and Prevention [DHHS], 1995, p. 4). Little in the literature discusses the biosocial and psychosocial influences upon the child or the mother. However, researchers have gathered a multitude of statistics demonstrating the delayed cognitive development of the child of a single parent. Unwed teenage mothers and their children are more likely living in lower socioeconomic conditions. The mothers face multiple risks of dropping out of school and becoming part of the economic underclass (Drummond Hansford, 1992, p. 529). The unwed mothers were perceived by society as deadbeats ripping off the American taxpayer. Additionally, the societal concern of Americans over teenage mothers was that babies are having babies; that 16 year old girls were too young and unprepared for the responsibilities of single parenthood (Whitehead, 2007, p. 6). The negativity surrounding unmarried mothers and their children was rampant during the years prior to 1970. That is not to say the mind-set completely disappeared at the stroke of midnight on December 31, 1969. The public opinion of unmarried mothers remains. How that opinion is manifested has undergone changes. The transformation of the single-parent family from uncommonness to an established family style was one of the most dramatic social changes of the 20th century. Only 1 in 10 children lived in a single-parent family prior to 1960. More than 1in 4 did so by the centurys end. Although the consequences of single parent family formation have received abundant scrutiny, less is known about the evolution of attitudes toward these families (Usdansky, 2009, p. 209). Is the increase of non-martial births due to eroding morals? Or, is there more ambivalence and apathy towards the single parent lifestyle? The cognitive development of morals and culture in emerging adult (ages 18-25) continues through middle age (Berger, 2008, p. 483). During this phase of human development, the emerging adult thinking is more practical, more flexible, and more dialectical (Berger, 2008, p. 472). The cultural background likely affects the cognitive process (Berger, 2008, p. 481). Cultural influences have an effect on religious belief development. The religious and spiritual growth of a genome progresses with stages of human development. Take the quotation below, for example. Marriage exerts less influence over how adults organize their lives and how children are born and raised than at any time in the nations history, the survey says. Between 1960 and 2005, the rate of unwed childbearing increased sevenfold, from 5.3 percent of all births to 36.8 percent. The survey finds that the average unwed mother is more likely to be white than black, and more likely to be an adult than a teenager. à ¢Ã¢â€š ¬Ã‚ ¦ The survey attributes this sharp increase in non-marital births to an ever greater percentage of women in the 20s, 30s, and older à ¢Ã¢â€š ¬Ã‚ ¦ delaying or forgoing marriage but having children. But more Americans than ever naively think they alone can make single-parenting work. Day-to-day realities slowly undermine this optimism. Single parents who have been at it awhile know better than anyone how less than ideal their situation is. Thats one reason we can expect to see more and more single parents looking for outside support. Single mothers à ¢Ã¢â€š ¬Ã‚ ¦often long for a strong, caring male to enter their childrens lives. So it nearly goes without saying: The church has a unique opportunity at this cultural moment. For years, we have been preaching the supremacy of the two-parent family, offering classes and seminars for young couples and familiesà ¢Ã¢â€š ¬Ã‚ ¦ A dramatic example, but boys without father figures and girls without mother figures have a strike against them. The latest national study shows that more children than ever are entering the world with such strikes. Its an unprecedented cultural moment for Christians, to see if we can act less like individual consumers of spirituality and more like the family of God (The fatherless child, 2007, p. 5). On August 22, 1996, President Clinton signed into law the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193, better known as the Welfare Reform Bill. This law changes how governmental financial assistance is administered. On September 15, 2000, the Department of Health and Human Services Secretary Donna Shalala awarded five states $100 million ($20 million each) in for reducing the number of out-of-wedlock births. Among the priorities of the 1996 welfare reform law were promoting parental responsibility and encouraging two-parent families, said Secretary Shalala. Im very pleased to award these bonuses as an incentive to advance these important family goals (U.S. Department of Health and Human Services [DHHS], 2000). Is the child borne of an unwed mother destined to poverty, illiteracy, and a life of crime? Is the single mother doomed to never-ending disgrace and the topic for scandalous gossip? In the next chapter, evidence throughout the years reveals the picture is not all black. The moment a child is born, the mother is also born. She never existed before. The woman existed, but the mother, never. A mother is something absolutely new. Rajneesh The year 1992 marked a pioneering event on network television. The highly-rated CBS show Murphy Brown started the new season with Murphy Brown, a divorced news anchorwoman, become pregnant and choosing to have the baby and raise it alone. Americas pro-lifers jeered, while the pro-choices cheered. Even the presidential candidates had something to say. Vice President Dan Quayle declared that the Los Angeles riots were caused in part by a poverty of values. He went on to denounce the acceptance of unwed motherhood. It doesnt help matters, Quayle complained, when Murphy Brown, a character who supposedly epitomizes todays intelligent, highly paid professional woman is portrayed as mocking the importance of fathers, by bearing a child alone, and calling it just another life-style choice (Murphy Brown, 1992). In 2006, Rosanna Hertz published her non-fiction book, Single by Chance, Mothers by Choice. She noted the Single By Choice (SBC) woman belongs to a distinct subgroup of single parents, who, out of a strong desire for a child, have made the active choice to go it alone. Moreover, she asserts the SBC route to parenthood does not necessarily seem to have an adverse effect on mothers parenting ability or the psychological adjustment of the child (Murray Golombok, 2005, p. 1655). From the early 1960s to the late 1980s, the percentage of women having a non-marital child increased by 50% among whites and by 24% among blacks (Currie, 2009, p. 37). One research study hypothesized a preventive group intervention with SBC mothers can identify potential psychological risk factors and help mothers with sensitive aspects of parenting (Ben-Daniel, Rokach, Filtzer, Feldman, 2007, p. 249). There is research indicating that women in the typical age group of SBC mothers (35 to 44) tend to experience more stress than younger mothers. Their lifestyle is well established; pregnancy and parenting are perceived by some as interfering with their chosen way of life, especially in her career. SBC women are often the oldest daughter in their family (Ben-Daniel et al., 2007, p. 263). In the few studies that exist on children of single mothers, no significant difference has been found in the childs emotional and social development. Likewise, the development of gender identity of children of single mothers, as compared with children raised in heterosexual families, was unaffected. The results of the study revealed therapeutic gain: Reduction of stress, tension and guilt; helped mothers prepared for parenting by encouraging a positive self-image and perceptions of the child. Improving the SBC mothers acceptance of her chosen family model therefore promoted her willingness to tell children their birth story (Ben-Daniel et al., 2007, p. 264). The child must be aware that it is okay to come from a family background different from a friends or neighbors. Some children live with two parents, others with only their mother or a father. Recently, grandparents have become the newest faction of caregivers for their grandchildren. Other relatives, step-parents, friends, or guardians are examples for the child to ponder. As one SBC mother revealed to her son, Walt Disneys famous mother and son elephant family never made reference to a father; and the mother and son seemed perfectly content. The child must know that he is a miracle, that since the beginning of the world there hasnt been, and until the end of the world there will not be, another child like him. Pablo Casals The non-marital child and his mother faced prejudice, humiliation, taunts and sneers over the centuries. The hurtful monikers of bastard or illegitimate child are slowly giving way to kinder terms. The prevalence of single by choice, mother by choice women is increasing at the end of the first decade in the 21st century. The commonality of alternative family models and the quiet acceptance of them allay the self-consciousness of the mother and child. No longer does the solo parent with her child have to endure the social stigma of a virtual scarlet letter. When two are a family, the biosocial, cognitive and psychosocial development of the non-marital child is determined by nature and nurture, the environment of unconditional love and acceptance by his society, and the eternal affection of his mother.

Jesus Christ Superstar Original Show Research

Smash Hit Musicals of the Past Century: Jesus Christ Superstar Jesus Christ Superstar was a hit long before it became a musical. The musical was a rock opera concept recording produced as an album before it was staged on Broadway. It is based loosely on the Gospels’ story on the last week of Jesus Christ’s life showing the struggles between Judas and Jesus. The story follows Judas who is not please with Jesus’ rise in popularity because Judas believes Jesus is just a man, not a God and that Jesus being a threat to the Roman Empire will bring trouble to Jesus, his followers and to Judas.Judas eventually ends up giving away the location of Jesus on a specific day helping the Roman soldiers find him and go forth to crucify him. The original production of the Broadway show was back in 1971. It was composed by the ever famous Andrew Lloyd Webber and the lyricist was Tim Rice. The show was directed by Tim O’Horgan and choreographed by Tom Stovall. The producer w as Robert Stigwood. The original city for the performance was New York City at the Mark Hellinger Theatre. The original set designer is Robin Wagner and the original costume designer is Randy Barcelo.The four main characters were Mary Magdalene played by Yvonne Elliman, Jesus Christ played by Jeff Fenholt, Judas played by Ben Vereen and King Herod/Merchant/Leper played by Paul Ainsley. The four most well known songs from this musical include â€Å"Superstar†, â€Å"Simon Zealot Poor Jerusalem†, â€Å"Gethsemane† and â€Å"Everything’s Alright†. The show first opened on October 12th, 1971 and closed on July 1, 1973 with a total of 711 performances within that time. The length of the show was approximately an hour and fifty five minutes.The setting of the musical is Jerusalem, house of herod, garden of Gethsemane and many other places during the time Christ was thought to have lived and was preaching the message of God. There were mixed reponses from critics but the loudest were those that though the show went against religious morals and ideas. â€Å"We’ve had some people that feel like it’s in some way sacrilegious because it’s not a traditional robes-and-sandals telling,† was a quote from an executive producer. South Africa went as far as banning the entire show from performing in their country when it first debuted on Broadway.Despite some negative responses, the show went on to be nominated for numerous awards such as the Tony award, the Drama Desk award and the Theatre world award. It won the awards for Most Promising Composer for the Drama Desk award and won the Theatre world award. For the Tony awards it was nominated for best performance by a featured actior in a musical, best original score, best scenic design, best costume design and best lighting design. The film was overall received very well by the public.Perhaps the most interesting thing about the show was the way it was portrayed, th e hippie movement and the Jesus movement being put together in one show. Numerous sections of the musical have Judas in groovy outfits with dancing hippie show girls backing him up in choreography and vocals. The original vocalists and actors for the show are seen as the best so far for Broadway versions. The musical also had a hit movie produced with stunning cinematography, wonderful choreography just as seen in the musical and riveting vocal qualities for each song.The film adaption was released in 1973 and was the eighth highest grossing film of that year. It was shot in Israel and other Middle Eastern locations. Ted Neely (playing Jesus) and Carl Anderson (playing Judas) both were nominated for Golden Globe Awards for their acting in the movie. It is obvious why they were nominated when one watches the film and sees their perfect ability to play their fragile characters in a way that show their musical talent, their power and yet the slight comedy behind each scene.They were tr uly able to show the rising â€Å"celebrity† status of Jesus in a way that somehow still manages to fit in historical information about the betrayal of Judas to Jesus. One may have been worried that the movie might be a slight bit boring in some parts but when I watched it I was not bored at all, in fact I found myself quite captivated by the choreography and the songs. Neely and Anderson kept me very focussed as well because I found their acting quite extraordinary. It is not hard to find yourself singing along to â€Å"Superstar† or â€Å"Poor Jerusalem† or being awestruck by the dance moves done by the mobs.A third film adaption is expected to be released in 2014 set to be directed by Marc Webb. In conclusion, it is quite obvious what made this show such a hit. The elements of small comedy, dance and the storyline made this a musical that was impossible to miss. Whether you loved it or hated it, you had to go see it and tell others about it. The show was able to tell a historical event and turn it into multiple dance and song numbers and even made it fun to watch which the key thing was.It was not the type of musical that would get you on your feet dancing but singing along and being captivated by the characters and their human elements. The relationship between the characters was a big part that played into the success of this show. Not to mention the costume design, that played a huge role as well in setting the stage and idea for the show. It was not a typical show of what Jerusalem looked like but rather a more â€Å"hippie, fun natured† version of it which is what made the audience enjoy it so much.It was not telling biblical stories, it was just a show which made the audience feel like they did not have to have any religious ties or issues with it (even though some chose to anyways) and they could just go and watch it. Perhaps it was the idea that no matter what anyone thought of Jesus, an underlying concept this musical sh owed was Jesus’ celebrity-like identity and what being a celebrity can do to the celebrity themselves and to their lovers and followers (betrayal, confusion, glory, death) and that just might be the real reason why nobody could seem to get this musical out of their mind.

Fair Value Accounting: Its Impacts on Financial Reporting and How It Can Be Enhanced to Provide More Clarity and Reliability of Information for Users of Financial Statements

International Journal of Business and Social Science Vol. 2 No. 20; November 2011 Fair Value Accounting: Its Impacts on Financial Reporting and How It Can Be Enhanced to Provide More Clarity and Reliability of Information for Users of Financial Statements Ashford C. Chea School of Business, Kentucky Wesleyan College 4721 Covert Avenue, Evansville IN 47714 USA Abstract The author begins the paper with a brief historical development of the Statement of Financial Accounting Standards (FAS 157) and its impact on fair value accounting.This is followed by the methodology employed in the research. Next, he reviews the literature on major issues in fair value accounting and financial reporting, and presents his findings from the study. The researcher ends the paper with recommendations to enhance the usefulness of fair value accounting and draws implications for financial reporting and users of financial statements.Keywords: Fair Value, Measurement, Financial Instruments, Market 1. INTRODUCT ION In December of 2001, accounting standard-setters around the world published a consultation paper (Financial instruments and similar items) that proposes fundamental changes to the way financial instruments are reported in the accounts of companies.In particular, the paper proposes, inter alia, that all financial instruments should be measured at fair value. The banking sector has long argued that such an approach is not appropriate for banks and that, to the extent that there are weaknesses in the way that banks currently account for their financial instruments, those ills are better addressed through incremental, than fundamental , change (Ebling, 2001).The Financial Instruments Joint Working Party of standard setters (JWP) main proposal are that: (a) all types of entity should measure all their financial instruments at fair value, and should recognize all changes in those fair values immediately in the profit and loss account; (b) the fair value of an instrument should be its estimated market exit price; (c) no exceptions should be made for financial instruments used in hedging arrangements (i. e. there should be no hedge accounting for financial instruments( Bies, 2005)).In other words, a financial asset for which an active market exists should be carried in the balance sheet at its market bid price and changes in that bid price should be recognized immediately in the profit and loss account. This would be the case regardless of the reason why the instrument is being held –for example, even if it is being held as a hedging instrument or being held until it matures—and regardless of the cause or nature of the market price change involved (Ebling, 2001). FAS 157 – Statement of Financial Accounting Standards No. 57, Fair Value Measurements—defines fair value and establishes a frame work for measuring fair value in generally accepted accounting principles (GAAP). While previous pronouncements involving valuation focused on what t o measure at fair value, FAS 157—issued by the Financial Accounting Standards Board (FASB) on September 15, 2006—focuses on how to measure fair value (Sinnett, 2007). What is fair value? FAS 157 are quite prescriptive, defining it as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement dates (Chambers, 2008).FAS 157 put in place a framework for fair value measurement and disclosure. Perhaps the most important feature in FAS 157 is the requirement to set out financial statements in three levels that describe the reliability of the inputs used to establish fair value. Fitch describes it as the fair value hierarchy. So Level 1 is quite straightforward, as the price used are identical to the input and discovered in something like a public exchange. It gets quite complicated for Level 2 assets and liabilities, because the prices used might be inferred from an index or another secu rity with similar attributes to the one being measured.Fair value measurement in Level 3 assets are purely model-driven, consisting of unobservable inputs, and have understandably swollen as markets have grown increasingly illiquid and disorderly (Chambers, 2008). For many years, users of financial statements have sought relevant and timely information about financial instruments and off-balance sheet items and activities. It is believe that fair value measurements and recognition of these values in the financial statements, along with adequate disclosures, will provide necessary information to evaluate properly an enterprise’s exposures to financial risks, as well as rewards (Anonymous, 2002). 2  © Centre for Promoting Ideas, USA www. ijbssnet. com This is because fair value reporting reflects the economic reality by showing the volatility inherent in the values of financial instruments given changes in market conditions and operations of the enterprise. Historic cost-base d accounting smoothes these effects, thus, obscuring this volatility and masking the economic impact of various positions held in financial instruments (Anonymous, 2007). 2. METHODOLOGY This paper relies on the literature review of current relevant articles focusing on accounting for fair value.Except where a source was needed specifically for its perspective on broad issues relating to fair value accounting, the author screened by ? fair value accounting? and by numerous variants of keywords, focusing specifically on fair value accounting and financial reporting in firms. Source papers included refereed research studies, empirical reports, and articles from professional journals. Since the literature relating to fair value accounting is voluminous, the author used several decision rules in choosing articles.First, because the accounting profession is changing fast in today’s environment, especially for financial instruments, the author used mostly sources published 2002-2010 , except where papers were needed specifically for their historical perspectives. Second, given the author’s aim to provide a practical understanding of the main issues in fair value accounting, he included, in order of priority: refereed empirical research papers, reports, and other relevant literature on current firms’ fair value reporting practices.To get some perspective on the current state of fair value accounting, the author begins with a literature review of some of the most important issues relating to the concept. 3. LITERATURE REVIEW 3. 1. Statement of Financial Accounting Standards (FAS 157) FAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This definition abandons a longstanding practice of using the transaction price for an asset or liability as its initial fair value.In other words, fair value will no longer be base d on what you pay for something; it will now be based on what you can sell it for, also known as its ? exit price.? Just as important, this definition emphasizes that fair value is market based— requiring the consideration of what other market participants might pay for something—and is no longer entityspecific. Valuation will now be determined by a skeptical, rather than optimistic, buyer. In turn, the level of data available to measure fair value will determine how the valuation of an asset or liability is determined.Common valuation techniques identified by FAS 157 are the market approach, income approach and/or cost approach. These models require inputs that reflect assumptions that market participants would use for pricing an asset or liability. Observable inputs would be based on market data obtained from independent sources, such as stock exchange prices. Meanwhile, in the absence of an active market for an asset or liability, unobservable inputs reflect the rep orting entity’s own assumptions.The standard provides a fair value hierarchy that gives highest priority to quoted prices in active markets (defined as level 1) and lowest priority to unobservable inputs (level 3) (Sinnett, 2007). 3. 2. Mark to Market Mark-to-market accounting refers to the accounting standards of assigning a value to a position held in a financial instrument based on the current fair market price, rather than its original cost or book value, for the instrument or similar instruments. Fair value has been part of U. S. generally accepted accounting principles (GAAP) since the early 1990s.Investors demand the use of fair value when estimating the value of assets and liabilities. This has been influenced by investors’ desire for a more realistic appraisal of an institution’s or a company’s current financial position. Mark to market is a measure of the fair value of accounts that can change over time, such as assets and liabilities. For examp le, financial instruments traded on a futures exchange, such as commodity contracts, are marked to market on a daily basis at the market close (Metzger, 2010). When banks mark to market, they follow two steps.First, they estimate the net realizable value of their portfolio of asset-backed securities. This involves discounting the cash flows of these assets. Then under fair value accounting, they have to take a haircut on these values that takes into account the price at which they could sell the assets. When the market is not functioning, of course, this haircut is very large. This is important because it suggests that the huge decline in the value of bank assets is not due to a decline that has certainly occurred—but rather to the market’s judgment about the risk of resale by a purchaser.It is this risks that—when combined with fair value accounting—has forced the write-downs in bank assets (Wallison, 2009). 3. 3. Relevance 13 International Journal of Bu siness and Social Science Vol. 2 No. 20; November 2011 The debate of fair value accounting basically revolves around the issues of relevance and reliability. Before discussing the issues of relevance of fair value, the author looks briefly at how fair value and relevance are generally defined.Fair value is defined in the FASB’s Preliminary View documents as an estimate of the price an entity would realized if it has sold an asset or paid if it had been relieved of a liability on the reporting date in an arm’s –length exchange motivated by normal business consideration. Relevance is defined in the glossary of the FASB Statement of Financial Accounting Concepts No. 2 as the capacity of information to make a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct expectation (Poon, 2004). 3. 4.Reliability and Measurements Reliability is defined in the glossary to the FASB Statemen t of Financial Accounting Concepts No. 2 as the quality of information that assures that information is reasonably free from error and bias and faithfully represented what it purports to represent. Fair value as an estimate of exit value under normal market condition is well defined and noncontroversial when there are well-established liquid markets. What if there is no liquid market? This is the situation in which an estimation of fair value will inevitably involve prediction of future cash flows and selection of appropriate discount rates.These estimates depend on management’s assumptions and measurement error. This has the potential to mask deliberate miscalculation and manipulation of the numbers. Both the FASB and the JWG acknowledge that some significant measurement issues must be resolved and they are working on developing more guidance regarding estimating fair value and establishing appropriate controls. However, it should be noted that the use of estimate is an esse ntial part of preparation of financial statements, e. g. the ubiquitous use of estimates in pension accounting (Poon, 2004).If markets were liquid and transparent for all assets and liabilities, fair value accounting clearly would be reliable information useful in the decision-making process. However, because many assets and liabilities do not have an active market, the inputs and methods for estimating their fair value are more subjective and, therefore, the valuations less reliable (Bies, 2005). 3. 5. Verification As the variety and complexity of financial instruments increases, so does the need for independent verification of fair value estimates.However, verification of valuations that are not based on observable market prices is very challenging. Many of the values will be on inputs and methods selected by management. Estimates based on these judgments will likely be difficult to verify. Both auditors and users of financial statements, including credit portfolio managers, will need to place greater emphasis on understanding how assets and liabilities are measured and how reliable these valuations are when making decision based on them (Bies, 2005). 3. 6.Disclosure The FASB states that the proposed update would change the wording used to describe the principles and requirements in U. S. GAAP for measuring fair value and for disclosing information about fair value measurements. Specifically, the proposed update would include amendments to (a) clarify FASB intent about fair value application of existing fair value measurement and disclosure requirements, and (b) change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements (Elifoglu et al. 2010). 3. 7.Financial Instruments Financial instruments versus nonfinancial instruments—many see fundamental inconsistency between measuring financial instruments at fair value and nonfinancial items largely on historic cost basis. Standard-setters reco gnize that whenever a boundary is drawn between financial statement items with different measurement attributes some inconsistencies and complexities often results. It is argued that there is economic logic in drawing a line between financial instruments and nonfinancial items, and more so than drawing a line including some inancial instruments but not others (Hague, 2002). Conceptually, the periodic returns on financial instruments can be separated into three components with distinct sustainability or certainty. The first two components—amortized cost interest and the difference between fair value interest and amortized cost interest-sum to fair value interest. It is useful to distinguish these two components of fair value interest because amortized cost interest is both sustainable and certain, whereas the difference between fair value interest and amortized cost interest is sustainable but uncertain.The difference between fair value interest and amortized cost interest is sustainable because unexpected changes in interest rates and the resulting unexpected changes in fair values affect fair value interest calculations throughout the remaining lives of financial instruments. 14  © Centre for Promoting Ideas, USA www. ijbssnet. com For example, an unexpected gain on a financial asset due to a decrease in interest rates in the current period reduces expected fair value interest revenue on the asset throughout its remaining life.This third component of the periodic returns to financial instruments is the unexpected change in their fair values during the period. Unexpected changes in the fair values of financial instruments are both unsustainable and uncertain (Ryan & et, al. , 2002). 3. 8. Financial Reporting The reporting of financial assets and liabilities is an election on a contract-by-contract basis and not mandatory. Therefore, not all instruments will necessarily be reported at fair value.In order to distinguish instruments that are reported at fair value from those that employ some other measurement, firms will have one of two reporting options on the statement of financial position. A firm may display the two classifications, fair-value and non-fairvalue carrying amounts, as separate line items on the statement of financial position. The second option for reporting is parenthical disclosure where the firm presents the aggregate of the two classifications and discloses the amount of the fair value parenthically (Schneider & McCarthy, 2007). . 9. Critics of Fair Value Critics argue that fair value accounting has created a false short-term visibility in the case of pension funding and hastened the demise of defined benefit schemes. More generally, critics argue that the financial crisis demonstrates the pro-cyclicality of fair values when accounting is tightly coupled to prudential regulatory systems, and the unreliability of marking to model in less than liquid asset markets, especially for assets which are being held for the long term (Power, 2010).They also add that the impact of fair value accounting (FVA) is likely to be more restrictive lending policies, and more demanding loan covenants, than are necessary for sound risk management, together with pricing which will be higher than is economically necessary (Allatt, 2001). Moreover, several commentators remarked on the fictional and imaginary nature of fair value and bemoaned their subjectivity and potential for manipulation and bias.Regardless of whether these criticisms have substance, it is also the case that if enough people believe in fictions, then they can play a role in constituting markets (Power, 2010). Many are comfortable with historic cost/realization accounting on the grounds that it is familiar and provide a more stable basis for prediction of future accounting than fair values. They argue that fair value based earnings cannot be predicted in the same way because of the effects of uncertain future events and see this as a significa nt drawback in being able to prepare budgets, forecasts, etc. nd to manage analysts’ expectations (Hague, 2002). Nevertheless, many critics of the subjectivity of fair value miss the real point. The very idea of reliability is being reconstructed in front of their eyes by shifting the focus from transactions to economic valuation methods, and by giving these methods a firmer institutional footing. Deep down the fair value debate seems to hinge on fundamentally different conceptions of the basis for reliability in accounting, making it less of a technical dispute and more of the politics of acceptability (Power, 2010). . 10. Proponents of Fair Value Few will question the relevance of information based on market prices as historical cost information is based on market prices at which assets were initially acquired and liabilities were initially incurred whereas fair value are based on current market prices. Fair value reflects the effects of changes in market conditions and cha nges in fair value reflect the effect of changes in market conditions when they take place. In contrast, historical ost information reflects only the effects of conditions that existed when the transaction took place, and the effects of price changes are reflected only when they are realized. As fair value incorporate current information about current market conditions and expectations, they are expected to provide a superior basis for prediction than outdated cost figures can since these outdated cost figures reflect an outdated market conditions and expectations (Poon, 2004).Proponents of fair value in accounting often appeal to notions of telling things as they are and of improving transparency. They point to areas such as pension accounting or the savings and loans industry in North America where fair values would have made problems (deficits, poor performing loans) visible much earlier, thereby enabling corrective action. An often heard trope is that one should not shoot the me ssenger of poor asset quality (Ebling, 2001). 4. FINDINGSWhile there is a large number of assets and liabilities reported or disclosed in financial statements, the percentage of these items and the dollar impact on earnings may not have been exorbitant for most companies, except for financial institutions. 15 International Journal of Business and Social Science Vol. 2 No. 20; November 2011 In 2008, only 27% of the total assets of the S&P 500 companies that had adopted FAS 157 were actually reported at fair value (Zion et al. , 2009). While this represents about $6. 6 trillion in assets, it is still a relatively small percentage of the assets.Because of the mixed attribute model used in U. S. Generally Accepted Accounting Principles (GAAP), some assets are measured using fair value while others—even very similar assets are measured at cost, or amortized cost, or by some other measure. The nature of the assets held by these companies determined, to a large extent, their exposur e to risk in the credit crisis. Companies in the financial sector had a much larger number of fair valued assets (39%) then did, for instance, companies in consumer staples (2%).Even within the financial sector, investment banks and insurance companies, most of whose assets are reported at fair value, were impacted more than commercial banks, whose largest assets is generally loans, which are not reported at fair value (Casabona & Shoaf, 2010). In addition, there is ample empirical evidence to support the relevance of fair value information of financial instruments. For example, Barth (2006) finds that fair valuation of investment securities influences the share price indicating that it provides extra information to investors.Additional discussion of findings of research on accounting for fair value of financial instruments can be found in FASC 1998 study (Poon, 2004). 5. ANALYSIS AND DISCUSSION While most people agree that fair values are the most relevant measure for financial ass ets and liabilities that an entity actively trades, some (most notably, those in the banking industry) argue that historical cost is the more appropriate measure if management intends to hold an asset or to owe a liability until maturity.The rationale for accounting on a historical cost basis is that it better reflects the economic substance of the transactions and the actual cash flow over time. They argue that fair value information, on the other hand, would reflect the effects of transactions and events in which the entity would not participate and thus is often irrelevant. The question here is whether management’s decision to hold assets or to continue to owe liabilities in light of changed market condition is relevant in evaluating the entity’s financial position and performance (Poon, 2004).Some also argue that the outcome of fair value accounting on entity’s financial liabilities is counterintuitive if its credit risks changes. The fair value of a financi al liability will decrease when the issuing entity’s credit risk deteriorates because the interest rate on the initial issue date would now be lower than what it would be if the liability was issued today. Conversely, if an entity’s credit rating improves, an increase in the fair value of its financial liability will result.However, as explained in Barth and Landsman (1995), changes in the credit rating represent wealth transfers between creditors and stockholders. It is not counterintuitive to see a decrease (an increase) in the value of a financial liability when there is a wealth transfer from creditor (stockholders) to stockholders (creditors) corresponding to the deterioration (improvement) of the credit rating of the issuing entity. Therefore, the outcome of fair value accounting is not readily counterintuitive.But as illustrated in Lipe (2002), financial statement users must be better educated about the impact of fair value accounting on financial liabilities. I n particular, a decrease (an increase) in the fair value of financial liabilities should not be interpreted as positive (negative) if it is due to deteriorating (improving) credit quality. In addition, loan covenants have to be revised and financial ratios involving financial liabilities have to be analyzed accordingly (Lipe, 2002).Still another argument against fair value accounting is the induced volatility of earnings if changes in fair values are reported in earnings. Some believe that this volatility of earnings may not correlate to management’s performance and that this would make it more difficult for users to predict future performance. First, this is not a reliability issue since fair values can be reliably measured but still vary a great deal from one period to another.Second, the requirement of fair value reporting does not have to go hand in hand with the requirement of recognizing changes in fair values in reporting earnings (Poon, 2004). For this reason changes in fair value should be separately reported based on causes such as the passage of time, changes in market conditions, changes in the entity’s financial health, changes in estimate, and changes in valuation techniques.Requiring fair value information as supplemental disclosures instead of financial statement recognition also addresses some of the concerns (e. g. , volatility of reported assets, liabilities, and earnings) of the opponents of fair value accounting. In addition, this will allow financial statement users to decide on their own how much reliance they will put on and how to use fair value information (Poon, 2004).FSP FAS 175-4 provides application guidance to assess whether the volume and level of activity for asset or liability have significantly decreased when compared with normal market conditions. However, this assessment should consider whether there are factors present that indicate that the market for the asset is not active at the measurement date, such as : (a) there are few recent transactions based on volume and level of activity in the market, (b) price quotations are not based on current information , 16  © Centre for Promoting Ideas, USA www. ijbssnet. com c) price quotations vary significantly either over time or among market makers , (d) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) (e) There is a significant decline or absence of a market for new issuances (Casabona & Shoaf, 2010). Research by Federal Reserve staff shows that fair value estimates for bank loan can vary greatly, depending on the valuation inputs and methodology used. For example, observed market rates for corporate bonds and syndicated loans with lower-rated categories have varied by much as 200 to 500 basis points.Such wide ranges occur even in the case of senior bonds and loans when obligors are matched. Moreover, the FASB statement on the proposed fair v alue standards that reliability can be significantly enhanced if market inputs are used in valuation. However, because management uses significant judgment in selecting market inputs when market prices are not available, reliability will continue to be an issue (Bies, 2005) 6. RECOMMENDATIONS In order to provide more relevant information to financial statement users, fair value information should be reported for all financial assets and liabilities.Given that there are still some important conceptual and practical issues relating to the reliable determination of fair value, it is better to first require full fair value disclosures before contemplating a shift to full fair value recognition in financial statements. That would enable investors, creditor, preparer, auditors, and regulators to learn from experience. When the issues relating to the reliable determination of fair values are resolved, they will be ready for full fair value recognition in financial statements (Poon, 2004).T he author concords with the SEC recommendations, which are expected to impact the FASB’s future activities, including (a) improve fair value accounting standards (b) improve the application of existing fair value requirements (c) readdress the accounting for financial asset impairment s (d) establish formal measures to address the operation of existing accounting standards in practice (e) implement further guidance to foster the use of sound judgment of practitioners (f) address the need to simplify the accounting for investments in financial asset (Casabona & Shoaf, 2010).The first priority seems to be to work in close co-operation with users and preparers of financial statements to further consider the practicality of the proposals and to demonstrate or refute the relative merits of fair value and historic cost based reporting of financial statements for users’ analysis purposes. Such work should involve rigorous testing to consider how fair value information would b e used in decision models, as well as to stimulate the preparation of fair value information to understand better the extent of many of the practical concerns (Hague, 2002).Second, implementation of the proposals would provide more useful, relevant and transparent information about an enterprise’s use of financial instruments than is available today. The full benefits, however, will only be understood with careful study and education about how to use the new information. A somewhat different mindset and base of expertise (from that appropriate to traditional recognition and historical cost-based accounting for financial instruments) is also necessary. This includes integrating knowledge of certain finance and capital-markets concepts and practices with financial accounting objectives and concepts (Hague, 2001).Third, financial instruments should be grouped and displayed on the balance sheet based on the underlying characteristics of the instruments, such as unconditional righ ts to receive or obligations to deliver, and by major classes within these groups. Detailed, descriptive information about the nature and terms of these financial instruments, as well as management’s policies pertaining to them, should be disclosed in the notes to the financial statements in a manner consistent with the balance sheet (Anonymous, 2002). Fourth, fair values reflect point estimates and by themselves do not result in transparent financial statements.Hence, additional disclosures are necessary to bring meaning to these fair value estimates. FASB’s proposal take a first step toward enhancing fair value disclosures related to the reliability of fair value estimates. Additional types of disclosures should be considered to give users of financial statements a better understanding of the relative reliability of fair value estimates. These disclosures might include key drivers affecting valuations, fairvalue-range estimates, and confidence level (Yonetani & Katsu o, 1998). Finally, another important disclosure consideration relates to changes in fair value amounts.For example, changes in fair value of securities portfolio can arise from movements in interest rates, foreign-currency rates, and credit quality, as well as purchases and sales from the portfolio. For users to understand fair value estimates, they must be given adequate disclosures about what factors caused the changes in fair value (Bies, 2005). 7. IMPLICATIONS FOR FINANCIAL REPORTING AND MANAGERIAL DECISION-MAKING Several implications are drawn from this paper. 17 International Journal of Business and Social Science Vol. 2 No. 20; November 2011First, standard-setters and regulators would be required to provide more specific guidance on how to determine fair value for financial statements. Perhaps, they can list some common valuation techniques and indicate their appropriateness in various circumstances. Disclosure requirements would include disclosure of fair value of all financ ial instruments along with method adopted to determine fair values, any significant assumptions used in their estimation, some indications of the sensitivity of the estimated fair value to these assumptions, and discussion of risk exposure and issues associated with the estimation of fair value (Poon, 2004).Second, the role of external financial reporting is to portray an enterprise as if seen through the eyes of management—that is, that financial reporting should be consistent with internal management practices. It is, obviously, desirable that there be as much compatibility between the two as possible. However, it is difficult to see how accounting that is driven by the manner in which an enterprise chooses to manage its financial instruments and risks can provide information to financial statement users that are consistent and comparable between enterprises (Hague, 2002).Third, the objectives of financial analysis are to discern and assess the effects to an enterprise†™s performance and financial condition, including those that result from its risk management policies and decisions that involve financial instruments. In addition, financial statement users want to assess how well an enterprise effectively applies these policies in managing the risks of the enterprise. Therefore accounting and disclosure requirements related to financial instruments must be designed to explain (a) risks inherent in a given business (b) hedging strategies employed and (c) outcome(s) of such hedging activities.In other words, financial and nonfinancial disclosures should provide sufficient information for users of this information to discern and answer question, such as these: (a) what are management’s policies and procedures for using certain financial instruments? (b) How extensively does the enterprise use these financial instruments as part of its risk management? (c) What are the timing and the magnitude of the effects of the instruments on fair values in the balance sheet and changes in these values reflected in the income statement? d) How effective, or ineffective, are the position in these financial instruments as hedges in managing the risk exposure of the enterprise? And (e) what portion of the gains and losses reported in the balance sheet and income statement is realized and unrealized? (Anonymous, 2002). Fourth, the fact that management use significant judgment in the valuation process, particularly for level 3 estimates, add to the concern about reliability. Management bias, whether intentional or unintentional, may result in inappropriate fair value measurements and misstatements of earnings and equity capital.This was the case in the overvaluation of certain residual trenches in securitizations in recent years, when there was no active market for these assets. Significant write-downs of overstated asset valuations have resulted in the failure of a number of finance companies and depository institutions. Similar problem s have occurred due to overvaluations in nonbank trading portfolios that resulted in overstatements of income and equity. The possibility of management bias exists today. There continue to be new stories about charges of earnings manipulation, even under the historical cost accounting framework.It is believe that, without reliable fair value estimates, the potential for misstatements in financial statements prepared using fair value measurements will be even greater (Bies, 2005). Fifth, three fundamental goals of accounting that are likely to have influenced the choice of fair value accounting for all financial firms. One of these objectives is to minimize what is called management bias. Management has an obvious incentive to inflate the value of a company’s assets, and many ways to do it. Marking a company’s assets to market is an effective way of taking his element of financial statement manipulation out of management’s hands (Wallison, 2009). Finally, the opt ion to use fair value for certain assets and liabilities will provide more relevant information to the users of financial statements. However, since the fair value usage can be elected for some financial assets and financial liabilities and avoided for others, there is a loss of consistency in the financial statements between entities and even within a single entity. Also the new standard imposes additional disclosure requirements (Schneider & McCarthy, 2007). 8. CONCLUDING REMARKSCurrent methods of accounting for financial instruments have been of concern to accounting standard-setters around the world for some time now. These concerns about financial instruments start from the observation that markets now exists for either the instruments themselves or the various financial risks that arise from the instruments, and the availability of those markets enables entities to actively manage the financial risks and, thereby, to realize some or all of the market value of their financial i nstruments with ease. (Ebling, 2001). 18  © Centre for Promoting Ideas, USA www. ijbssnet. comIt has been argued that different conceptions of what is for an accounting estimate to be reliable underlie the fair value debate as it has taken shape in the last decade. The language of subjectivity and objectivity is unhelpful in characterizing what is at stake; it is more useful to focus on the question of how certain valuation technologies do or don’t become institutionally accepted as producing facts (Power, 2010). However, the shift in accounting principles will not come without some additional effort by all capital market participants, including preparers, auditors, regulators, and users of this information.It is realized that accounting and reporting based on fair value principles, in comparison with historical cost-based principles, require more extensive and detailed analysis of the methods and assumptions used to determine values recognized in the financial statements. This in turn, will require market participants to redesign the current financial reporting model and to educate themselves in the application of these new principles. Nonetheless, transparency of the true economic consequences, i. e. isks and rewards, resulting from the use of financial instruments justifies the movement to a fair value based model for financial reporting (Anonymous, 2002). Certainly, mark-to-market reporting has its drawbacks, especially for derivatives. First, fair value based on market prices can be difficult to determine for complex and lightly traded instruments. These types of derivatives are the level 3 type mentioned above. These derivatives are usually measured using a mark-to-model process, which can be arbitrary at best and fraudulent at worst.Next, there is the theoretical issue, as banks successfully argued, as to whether market price does indeed represent fair value. Also, the relevance of market prices can be challenged with respect to intent. Some ob servers challenge the relevance of market prices because they believe that, if government officials do not intend to trade derivatives but rather hold them to maturity, as is usually the case with derivatives used for hedging, then the time and expense of determining fair value may not be worthwhile.Still, using fair value accounting is proper for derivative reporting because it enhances the following qualities or objectives of financial measurement and reporting: accountability, transparency, consistency, inter-period equity, and risk management (Metzger, 2010). REFERENCES Allatt, G. (2001). Fair value accounting: Examining the consequences. Balance Sheet, 9, 22-26. Anonymous (2007). Statement of financial accounting standards No. 159: The fair value option for financial assets and financial liabilities. Journal of Accountancy, 203, 96-101. Anonymous (2002). Financial instruments: Fair values and disclosure.Balance Sheet, 10, 12-20. Bath, M. (2006). Including estimates of the futur e in today’s financial statements. Accounting Horizon, 20, 271-286. Barth, M. & Landsman, W. ( December, 1995). Fundamental issues related to using fair value accounting for financial reporting. Accounting Horizons, 97-107. Bies, S. S. (2005). Fair value accounting. Federal Reserve Bulletin, 91, 26-30. Casabona, P. & Shoaf, V. (2010). Fair value accounting and the credit crisis. Review of Business, 30, 19-31. Chambers, A. ( March, 2008). How do you mark to market? Euromoney, 1-3 Ebling, P. (2001). Fair value accounting: Breaking a butterfly upon a wheel?Balance Sheet, 9, 22-27. Elifoglu, I. H. , Fitzsimons, A. P. , & Lange, G. A. (2010). FASB proposal clarifies fair value measurement and disclosure. Commercial Lending Review, 75, 42-48. Hague, I. (2001). Fair debate for fair value. CA Magazine, 134, 47-49. Hague, I. (2002). Fair value for financial instruments: Where to next? Balance Sheet, 10, 8-12. Lipe, R. (2002). Fair value debt turns deteriorating credit quality into pos itive signals for Boston Chicken. Accounting Horizons, 17, 169-181. Metzger, L. (2010). Mark to market governments. The Journal of Government Financial Management, 59, 16-20. Poon, W. W. (2004).Using fair value accounting for financial instruments. American Business Review, 22, 39-44. Power, M. (2010). Fair value accounting, financial economics and the transformation of reliability. Accounting and Business Research, 40, 197-211. Ryan et al. (2002). Reporting fair value interest and value changes on financial instruments. Accounting Horizons, 16, 259-268. Schneider, D. K. & McCarthy, M. G. (2007). Fair value accounting broadened with FAS-159. Commercial Lending Review, 45, 28-36. Sinnett, W. M. (2007). New fair value standards stress HOW not just WHAT. Financial Executive, 23, 33-36. Wallison, P. J. (2009).Fixing fair value accounting. OECD Journal on Budgeting, 9, 99-105. Yonetani, T. & Katsuo, Y. (1998). Fair value accounting and regulatory capital requirements. Economic Policy Rev iew, 4, 33-44. Zion, D. , Varshney, A. & Cornett, C. ( June, 2009). Focusing on fair value. Credit Suisse Equity Research, 4, 18-20. 19 Copyright of International Journal of Business & Social Science is the property of Centre for Promoting Ideas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.

Basal Ganglia Function and Location

The basal ganglia are a group of neurons (also called nuclei) located deep within the cerebral hemispheres of the brain. The basal ganglia consist of the corpus striatum (a major group of basal ganglia nuclei) and related nuclei. The basal ganglia are involved primarily in processing movement-related information. They also process information related to emotions, motivations, and cognitive functions. Basal ganglia dysfunction is associated with a number of disorders that influence movement including Parkinsons disease, Huntington disease, and uncontrolled or slow movement (dystonia). Basal Nuclei Function The basal ganglia and related nuclei are characterized as one of three types of nuclei. Input nuclei receive signals from various sources in the brain. Output nuclei send signals from the basal ganglia to the thalamus. Intrinsic nuclei relay nerve signals and information between the input nuclei and output nuclei. The basal ganglia receive  information from the cerebral cortex and thalamus through input nuclei. After the information has been processed, it is passed along to intrinsic nuclei and sent to output nuclei. From the output nuclei, the information is sent to the thalamus. The thalamus passes the information on to the cerebral cortex. Basal Ganglia Function: Corpus Striatum The corpus striatum is the largest group of basal ganglia nuclei. It consists of the caudate nucleus, putamen, nucleus accumbens, and the globus pallidus. The caudate nucleus, putamen, and nucleus accumbens are input nuclei, while the globus pallidus is considered output nuclei. The corpus striatum uses and stores the neurotransmitter dopamine and is involved in the reward circuit of the brain. Caudate Nucleus: These  C-shaped paired nuclei (one in each hemisphere) are located primarily in the frontal lobe region of the brain. The caudate has a head region that curves and extends forming an elongated body that continues to  taper at its tail. The tail of the caudate ends in the temporal lobe at a limbic system structure known as the amygdala. The caudate nucleus is involved in motor processing and planning. It is also involved in memory storage (unconscious and long-term), associative and procedural learning, inhibitory control, decision making, and planning.Putamen: These  large rounded nuclei (one in each hemisphere) are located in the forebrain and along with the caudate nucleus  form the dorsal striatum. The putamen is connected to the caudate nucleus at the  head region of the caudate. The putamen is involved in voluntary and involuntary motor control.Nucleus Accumbens: These  paired nuclei (one in each hemisphere) are located between the caudate nucleus an d putamen. Along with the olfactory tubercle (sensory processing center in the olfactory cortex), the nucleus accumbens forms the ventral region of the striatum. The nucleus accumbens is involved in the brains  reward circuit and behavior mediation.Globus Pallidus: These paired nuclei (one in each hemisphere) are located near the caudate nucleus and putamen. The globus pallidus is divided into internal and external segments and acts as one of the major output nuclei of the basal ganglia. It sends information from basal ganglia nuclei to the thalamus. The internal segments of the pallidus send the majority of output to the thalamus via the neurotransmitter gamma-aminobutyric acid (GABA). GABA has an inhibitory effect on motor function. The external segments of the pallidus are intrinsic nuclei, relaying information between other basal ganglia nuclei and internal segments of the pallidus. The globus pallidus is involved in the regulation of voluntary movement. Basal Ganglia Function: Related Nuclei Subthalamic Nucleus: These small paired nuclei are a component of the diencephalon, located just below the thalamus. Subthalamic nuclei receive excitatory inputs from the cerebral cortex and have excitatory connections to the globus pallidus and substantia nigra. Subthalamic nuclei have both input and output connections to the caudate nucleus, putamen, and substantia nigra. The subthalamic nucleus plays a major role in voluntary and involuntary movement. It is also involved in associative learning and limbic functions. Subthalamic nuclei have connections with the limbic system through connections with the cingulate gyrus and nucleus accumbens.Substantia Nigra: This large mass of nuclei is located in the midbrain and is also a component of the brainstem. The substantia nigra is composed of the pars compacta and the pars reticulata. The pars reticulata segment forms one of the major inhibitory outputs of the basal ganglia and assists in the regulation of eye movements. The pars compact a segment is composed of intrinsic nuclei that relay information between input and output sources. It is involved mainly in motor control and coordination. Pars compacta cells contain pigmented nerve cells that produce dopamine. These neurons of the substantia nigra have connections with the dorsal striatum (caudate nucleus and putamen) supplying the striatum with dopamine. The substantia nigra serves numerous functions including controlling voluntary movement, regulating mood, learning, and activity related to the brains reward circuit. Basal Ganglia Disorders Dysfunction of basal ganglia structures results in several movement disorders. Examples of these disorders include Parkinsons disease, Huntington disease, dystonia (involuntary muscle contractions), Tourette syndrome, and multiple system atrophy (neurodegenerative disorder). Basal ganglia disorders are commonly the result of damage to the deep brain structures of the basal ganglia. This damage may be caused by factors such as head injury, drug overdose, carbon monoxide poisoning, tumors, heavy metal poisoning, stroke, or liver disease. Individuals with basal ganglia dysfunction may exhibit difficulty in walking with uncontrolled or slow movement. They may also exhibit tremors, problems controlling speech, muscle spasms, and increased muscle tone. Treatment is specific to the causation of the disorder. Deep brain stimulation, electrical stimulation of targeted brain areas, has been used in the treatment of Parkinsons disease, dystonia, and Tourette syndrome. Sources Lanciego, Josà © L., et al. â€Å"Functional Neuroanatomy of the Basal Ganglia.† Cold Spring Harbor Perspectives in Medicine, Cold Spring Harbor Laboratory Press, Dec. 2012.Parr-Brownlie, Louise C., and John N.J. Reynolds. â€Å"Basal Ganglia.† Encyclopà ¦dia Britannica, Encyclopà ¦dia Britannica, Inc., 19 June 2016.Wichmann, Thomas, and Mahlon R. DeLong. â€Å"Deep-Brain Stimulation for Basal Ganglia Disorders.† Basal Ganglia, U.S. National Library of Medicine, 1 July 2011.