International distribution of the corporate tax - Free Samples

Questions: 1. From your firms financial statement, list each item of equity and write your understanding of each item. Discuss any changes in each item of equity for your firm over the past year articulating the reasons for the change. 2. What is your firms tax expense in its latest financial statements? 3. Is this figure the same as the company tax rate times your firms accounting income? Explain why this is, or is not, the case for your firm. 4. Comment on deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded. 5. Is there any current tax assets or income tax payable recorded by your company? Why is the income tax payable not the same as income tax expense? 6. Is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? If not why is the difference? 7. What do you find interesting, confusing, surprising or difficult to understand about the treatment of tax in your firms financial statements? What new insights, if any, have you gained about how companies account for income tax as a result of examining your firms tax expense in its accounts? Answers: Answer 1 After analysing the annual report of Audio Pixels Holdings Ltd, it is considered that equity capital of Audio Pixels Holdings Ltd is accompanied with contributed capital, owners equity and retained earnings. Contributed Equity Reserve Retained Earning Contributed equity It is the amount of capital contributed by the shareholders for the owners equity. Retained earnings- It is the amount of profit which company has accumulated and not distributed to its shareholders. Reserve- It is accumulated total distributable profit which could be plugged back by company in its business (Brigham and Ehrhardt, 2013). Contributed capital could also be defined as stakeholders equity which shareholders have invested in the company. In 2015, Audio Pixels Holdings Ltd is having AUD $ 37 million contributed capital which increased AUD $ 45 million in 2016. Accumulated profit of Audio Pixels Holdings Ltd has also shown negative data as company has been facing high amount of loss in its business functioning. Equity (Amount in dollar million) ($M) 2015 2016 Contributed equity 37 45 Retained earning (13) (18) Total equity (24) (24) Answer 2 Tax expenses of Audio Pixels Holdings Ltd It is considered that tax amount is charged on the profit of company and deducted from the overall net profit of company. The recording of tax expenses is shown in the profit and loss accounts. On the other hand, excess payment of tax would be shown in the deferred tax assets of company. The income tax paid by company is zero. It is observed that company has been suffering from high amount of loss throughout the time. It is inferred that company pays tax on its profit. In present case, Audio Pixels Holdings Ltd is having zero amount of tax implication due to its loss incurring business (Audio Pixels Holdings Ltd, 2017). Particular(AUD $ in million) 2015 2016 Income tax expenses 0 0 This table given reflects that company has loss in its business. Therefore, it is not allowed to pay tax on its loss. Answer 3 Tax rate figure of the Audio Pixels Holdings Ltd and its comparison with the tax deduction from the overall accounting income Current Tax: - It is evaluated that tax payment of Audio Pixels Holdings Ltd in 2016 is zero. It is analysed that company has been incurring high amount of losses in its business due to sluggish market condition. It reveals that company has zero level of tax obligations. Income tax is charged on the profit of company and for the recording of tax amount, Audio Pixels Holdings Ltd needs to comply with the IFRS rules and AASB-112. Audio Pixels Holdings Ltd is international company therefore, in order to harmonize with the domestic and international taxation rules; it has to comply with the AASB-112. In order to justify, whether the tax amount computed on the basis of computation i.e. 30% * net profit is no equal to recording of the tax charged on the profit in its financial statement, following example could be given (Cucchiella, DAdamo and Gastaldi, 2015). It is observed that the main differences between both amounts are found due to the difference between accounting and taxation rules and regulations. For instance, tax rate is charged on the profit of company i.e. 30% *AUD $ (5) million= AUD .15 million. Company could take rebate of this amount from the government from their future tax implication. On the other hand, as per the income tax rules and regulations, tax amount would be zero if there is no profit earned by company. The main difference between tax amounts arise due to different recording of tax expenses, revenue in the books of account of Audio Pixels Holdings Ltd. For instance, recording of bed debts recording, creating provisions and donations payment is different in as per the accounting and income tax rules and regulations. Therefore, it could be inferred that due to the difference between taxation rules and regulations and accounting rules, Audio Pixels Holdings Ltd may not have same tax amount figures computed by undertaking accounting income to recording of tax in financial statements. Answer4 Deferred tax assets/liabilities of the Audio Pixels Holdings Ltd Audio Pixels Holdings Ltd has been following international accounting rules and regulations for recording of taxes in its books of accounts. It is observed that company record deferred tax amount in its books of account either in its liabilities side or assets side. In Audio Pixels Holdings Ltd, company has non deferred tax assets or liabilities. Audio Pixels Holdings Ltd has not recorded deferred tax in its books of accounts. Recording of Deferred Tax:- The deferred tax amount recorded in the books of accounts Audio Pixels Holdings Ltd is zero. The deferred tax amount is recorded in the liabilities side or assets side of company so that it could be recognized and carried forward to the limit that is reasonably certain for the future taxable income against which deferred tax assets or liabilities would be realised. The recording of deferred tax assets and liabilities is recorded due to the difference between accounting and taxations rules. For instance, if Audio Pixels Holdings Ltd finds that due to difference between accounting and taxation provision. If company charge higher tax by considering accounting rules and regulations as compared to tax charged as per the taxations rules then excess amount would be shown as deferred tax liabilities of company. On the other hand, if tax is computed less due to different accounting and taxation rules and then excess payment to government would be recorded as deferred tax assets (Cucchiella, D Adamo and Gastaldi, 2015). Particular (AUD $ million) 2017 2016 Deferred tax liabilities 0 0 Deferred tax assets 0 0 Note- Audio Pixels Holdings Ltd can never have deferred tax assets and deferred tax liabilities in its books of account at the same time (Cobham and Loretz, 2014). Answer5 Current tax assets and other income tax payable by company It is evaluated that current tax payable by Audio Pixels Holdings Ltd is AUD $ 0. Company has been incurring losses in its business since very long time. It is observed that income tax payable of company is also zero. Audio Pixels Holdings Ltd is having no tax liabilities as it is incurring losses since four years. In addition to this, tax is charged on the profit of company. Therefore, there is zero tax implication on the business functioning of Audio Pixels Holdings Ltd. Deferred tax assets of Audio Pixels Holdings Ltd are also zero. Particular(AUD $ in million) 2016 2017 Income tax payable 0 0 It is observed that company has recorded zero tax payable in its books of accounts. The income tax payable is the liability which needs to be paid by company. Why income tax expenses is not same as the income tax payable It is analysed that income tax expenses charged on the profit and recorded for the current year in the profit and loss account of company. On the other hand, income tax payable is the accumulation of the tax liabilities of company which need to be paid by company to government (Brigham and Ehrhardt, 2013). Answer6 Is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? If not Why are the differences? Cash flow statement could be defined as statement comprised of details about the cash inflow and outflow from the business in current year irrespective of the fact whether it relates to current year or previous year. It is the part of the financial statement that is prepared with a view to analyse the inflow and outflow of cash from the business in particular year. The On the other hand, profit and loss account of company is prepared with a view to record all the expenses and revenue of company related to present year. It is prepared with a view to identify the actual profit and loss of company. A cash flow statement reveals all the tax payment made by Audio Pixels Holdings Ltd in the current year irrespective of the fact whether they relates to current year or previous year. Profit and loss account contains the tax amount which is charged on the current year profit. Answer7 Treatment of tax in your firms financial statements Interesting thing about the recorded its entire tax amount The main interesting thing about the recording of entire tax amount is related to recording of tax as per the accounting rules and regulations and accounting rules. The income tax is recorded in the books of accounts as per the AASB-122. The tax is not charged on the loss making company. Audio Pixels Holdings Ltd is highly loss making company. Surprising thing about the recorded its entire tax amount It is observed that recording of entire tax in Audio Pixels Holdings Ltd related to corporate governance and procedure of charging tax. It is evaluated that company can never have deferred tax assets and deferred tax liabilities in its books of account (Henry, et al. 2009). Difficulty in recorded the entire tax amount It is observe that Audio Pixels Holdings Ltd may find difficult to record the tax charged on its profit. It is considered that if company wants to books deferred tax liabilities in the books of account then it will first have to set off its entire deferred tax assets amount from its financial statements. The main difficulty would be for stakeholders of Audio Pixels Holdings Ltd who might find difficulty to understand the taxations rules and accounting policy of company. However, by reading notes to account, shareholders may find easy to understand tax recording process of company (Evans, 2016). New sight about the recording of taxes It is observed that Audio Pixels Holdings Ltd is having high amount of losses since very long time. Therefore, it is not required to pay taxes to government. However, the benefits of losses could also be used to set off taxes from the coming years in which it may require to pay tax in future (Alstadster, Jacob and Michaely, 2015). References Alstadster, A., Jacob, M. and Michaely, R., 2015. Do dividend taxes affect corporate investment?.Journal of Public Economics. Audio Pixels Holdings Ltd, 2017, annual report, Retrieved on 26th January, 2017 from https://www.audiopixels.com.au/index.cfm/investor/annual-report/ Brigham, E.F. and Ehrhardt, M.C., 2013.Financial management: Theory practice. Cengage Learning. Cobham, A. and Loretz, S., 2014. International distribution of the corporate tax base: Implications of different apportionment factors under unitary taxation. Cucchiella, F., DAdamo, I. and Gastaldi, M., 2015. Financial analysis for investment and policy decisions in the renewable energy sector.Clean Technologies and Environmental Policy,17(4), pp.887-904. Evans, A.C.M., 2016. What is a conceptually possible flow through design for an alternative vehicle in the private context in domestic income tax legislation? With an applied case study on the Australian business trust. Henry, K., Harmer, J., Piggott, J., Ridout, H. and Smith, G., 2009. Australias future tax system.Canberra, Commonwealth Treasury.

The Ozone Essays - Gases, Greenhouse Gases, Ultraviolet Radiation

The Ozone The Ozone Ozone derives from the greek word ozein which means to smell. It was first discovered in 1839 by Christian Friedrick Schonbein who noticed it because of its distinctive acrid smell. He discovered this at the University of Basel in Switzerland. Ozone is merely oxygen, but not the type we breath. Ozone, O3 has three compounds while oxygen has only two. Ozone is reac- tive, meaning it does not stay still, and wants to go back to its original state, with two compounds, O2. This is why ozone isharmful. Ozone always wants to let go of its third compound, and if this compound reacts with other substances, it could be damaging, especially to humans. When discussing with the ozone layer, one should know the four major atmosphere levels on earth. The troposphere which is between zero and fifteen kilometers in altitude and has tempera- ture ranges from two hundred to two hundred ninety kelvins. The second is the stratosphere which ranges from fifteen to approxi- mately fifty kilometers in altit ude and has temperature ranges from two hundred to two hundred fifty kelvins. The third level in the atmosphere is mesosphere. This level ranges from fifty to eighty-five kilometers in altitude and has temperature rangesbetween one hundred eighty and two hundred fifty kelvins. Finally, the thermosphere is the final level in the atmosphere. It's range is eighty-five to one hundred forty kilometers and also temperatures as high as four hundred sixty kelvins. Society has been widely addressed with the many problems that we are having in our environment today. A major problem is that of CFCs. CFC stands for Chlorofluorocarbons which are found in many of the aerosol spray cans. In December of 1973, Rowland and Molina discovered that CFCs can destroy the ozone in the stratosphere. In June 1975, the Natural Resources Defence Council (NRDC) sued the Consumers Product Safety Commission for a band of CFCs used in aerosol spray cans. United States's fifth largest manufacturers of aerosol spray s announced that they will reduce the amount of CFCs used in there products. But as things started to get better, The Consumer Product Safety Commission rejected NRDC's law suit in July stating that there was insufficient evidence towards the amount of harm the CFCs were doing to the ozone layer. On September 1976, a report was released which re-enforced Rowland and Molina's hypothesis, but also stated that the govern- ment action on CFC regulations should be postponed. This report also stated that the CFCs can initiate climatic changes and contribute to the warming of the earth's atmosphere, i.e., the greenhouse effect. May 1977, several government agencies announced joint plans to limit, but not eliminate uses of CFCs in aerosol spray cans. But on February of the following year, the government decided to postpone the regulations on CFCs used in refrigeration, air conditioning, solvents, and other industrial processes. With all the new regulations taking affect and being postponed, nothing was getting accomplished, but finally, on October 1978, aerosols where banned in the United States. August of 1981, satellite pictures showed that over one percent of the ozone was lost due to CFCs. Then, in October of 1984, research groups found a forty percent loss of ozone over Antarctica. In August of 1985, satellite photos confirmed the existence of an ozone hole over Antarctica. Even though many were trying to reduce the amount of CFCs in their products, there were still some out there who wanted to make the fast buck. February 1988, three US senators asked Du Pont to stop making CFCs but the chairman denied the requested. Three weeks later, the chairman agrees to ease manufacturing of chemicals, but only when substitutes were available. Eight in a million of the widely scattered molecules are ozone in our atmosphere--this is what is responsible for the rising of temperature. Ozone takes in ultra-violet rays when they come from the sun and converts the radiation to he at and chemical energy. The ozone layer also seals earth from the many of the other powerful radiation rays that the sun gives off. Splitting of oxygen molecules depends upon the intense radiation, therefore, the greatest ozone production is over the tropics. The ozone is dangerous to

AP Scholarly Writing Task I Essay Sample

AP Scholarly Writing Task I Essay SampleThe AP Scholarly Writing Task I Essay Sample is the first step towards completing your AP Writing Essay task. This sample consists of two individual paragraphs that will serve as examples to construct a four-paragraph essay. You can choose to write the sample by yourself or you can send it to an essay writer for editing and copyediting.The first paragraph of the paragraph contains a simple introduction that introduces the writer to the topic of the essay. The author is then asked to explain how he or she intends to express the topic and what the writer hopes to accomplish. Next, the author needs to develop a personal viewpoint about the topic that is then connected to specific information that is provided. In most cases, the writer will use an argument to support his or her point.The second paragraph of the task is then presented in relation to the first paragraph. It will need to show how the writer intends to structure his or her essay. The w riter will need to look for keywords that can be used to provide a topic that is related to the reader's interest.The AP Scholarly Writing Task I Essay Sample is best to use when completing an AP seminar task. When writing the AP seminar task, the writer must organize all of the information that they have in order to be organized and available when the assignment begins.With the help of the task, the writer will be able to record all of the material that they need in order to compile a theme. This task is best used for writers who want to focus on a particular topic and would like to build the bulk of their essay around the topic.The task can also be used for students who want to complete an essay on a certain topic. They will need to complete a similar task, but they will need to include additional information in order to complete a more advanced thesis.When using the task as part of an AP seminar assignment, the writer will need to be able to support the points made in the essay. The task is a good one for writers who are not sure about the order in which they should present their information.

How to Conjugate the French Applaudir (to Applaud, Clap)

How to Conjugate the French Applaudir (to Applaud, Clap) The French word applaudir means to applaud or to clap. Applaudir is  a regular verb, meaning its one of those words thats relatively easy to conjugate.   How to Conjugate the French Verb Applaudir To conjugate a regular verb, start with the stem and add the ending appropriate of the type of verb youre conjugating and the subject pronoun youre using- the person or thing doing the action. Applaudir is a regular -ir verb, so  the stem is  applaud- and the endings are those of regular infinitives ending in -ir. This chart will help you figure out how conjugate applaudir. Present Future Imperfect j applaudis applaudirai applaudissais tu applaudis applaudiras applaudissais il applaudit applaudira applaudissait nous applaudissons applaudirons applaudissions vous applaudissez applaudirez applaudissiez ils applaudissent applaudiront applaudissaient The present participle of applaudir is applaudissant. The present participle is less common in French than its English equivalent -ing. You may use the present participle as an adjective, gerund, noun  or verb. For example: Applaudissant, nous avons commencà © departer le thà ©Ãƒ ¢tre.Applauding, we began to leave the theater. Other Simple Conjugations of Applaudir Subjunctive Conditional Pass simple Imperfect subjunctive j applaudisse applaudirais applaudis applaudisse tu applaudisses applaudirais applaudis applaudisses il applaudisse applaudirait applaudit applaudt nous applaudissions applaudirions applaudmes applaudissions vous applaudissiez applaudiriez applaudtes applaudissiez ils applaudissent applaudiraient applaudirent applaudissent Imperative (tu) applaudis (nous) applaudissons (vous) applaudissez How to Form the Past Tense of Applaudir You can use the imperfect tense to talk about something in the past (japplaudissais / I was clapping) but youre more likely to use the passà © composà ©, which is a compound tense. Applaudir uses the auxiliary verb avoir, and the past participle is applaudi. For example: Jai applaudi.I applauded. Nous avons applaudi.We applauded.

How to Create Great Images for Your Blog Posts

How to Create Great Images for Your Blog Posts Images for your blog posts  are important for many reasons. They illustrate important points to your readers, make social shares of your posts stand out in the newsfeed, break up text to make the content easier to read, and encourage people to share your post for no other reason than they like the main image. While there are many sources of ready to use images available, you should consider creating unique images on your own. In this post, were going to look at the reasons why you should create your own great images for content and the ways you can do it. Why You Need to Create Your Own Images You might be wondering, since I mentioned that there are many sources of ready to use images already available, why you would want to spend the time creating your own. Here are just a few good reasons. Stock photos are generic and widely used. Anyone can buy and use a stock photo for less than a dollar, which means many images appear on the Internet hundreds, or even thousands of times. If youre goal is to create unique content, why top it off with a generic image? Creative Commons image use can backfire. Many Creative Commons images are licensed specifically for non-commercial use. Non-commercial is open to interpretation by the owner of the image, therefore, if you use their image on a blog owned by a business or a blog that generates revenue, it may be considered commercial usage. People are more like to share images theyve never seen. People who love sharing images on sites like Pinterest are more likely to share yours if its something theyve never seen before that is either useful or simply visually appealing. People are more like to share images theyve never seen. #visualcontent #contentmarketing @kikolaniNow that you know why you should create your own images, lets take a look at how to create them. How to Create Effective Screenshots For those who enjoy creating how-to and tutorial content, screenshots are essential. Free tools like Jing will allow you to not only capture screenshots, but also easily annotate them. Annotations help make your points or instructions crystal clear to readers who need a little visual supplementation. People will not only appreciate your ability to illustrate your points clearly, but youll also get requests from others who want to share your annotated screenshots. Use those requests to get your name in front of new audiences without any additional work. Another great tool for screenshots is FooCapture. You install the extension on Google Chrome and use it to capture screenshots, annotate them, and have them automatically added to your WordPress (WordPress.com or WordPress.org) media library. Premium service plans for this tool is only $6 per month for unlimited connections / WordPress connections. How to Customize Images on Canva For graphically challenged individuals like myself, Canva is a tool that helps you quickly create graphics for your blog content, social media, and presentations. They have templates with built-in images and overlay text that you customize to fit your content. All of the work is done online, and what you create is free, unless you pick a template that uses a stock photo in the background. If youve browsed the blog graphic templates, you might have noticed they all come in one size (800px x 1200px). The key to using Canva is to not limit yourself to the blog graphic templates, even if thats what you are using them for. There is a total of twenty categories of template types, with square and rectangular designs. You might find that the Facebook cover templates are better suited to your posts than the actual blog graphic templates. To further customize your images, use your own background photos, or find stock imagery from other sources. This will easily differentiate your blog graphics from someone elses. When you do choose your own background photo, aim for a similar color pattern and blurring effect, the latter of which you can do using tools mentioned in the upcoming section about using your own photographs. This will ensure the text overlay provided in the template still stands out. How to Generate Infographics Infographics have gotten a bad reputation in the last year due to the influx of low-quality infographics created in order to build links for SEO purposes. They are still some of the most popular types of images to share. So how do you create infographics? First, youll need to start with some interesting data that relates to your products, services, or industry. ShareThis, a popular social sharing plugin, regularly publishes infographics about the social sharing statistics around music festivals, sporting events, holidays, and other trending topics. If you dont have data from your products, you can use public data sources or conduct surveys on your own. Once you have your data, you will want to share it in a visually appealing image, aka the infographic. Tools like Piktochart allow you to create infographics based on pre-built templates or using their drag and drop editor, removing the need for you to be a graphic designer. Similar tools include Infogr.am, Visual.ly, and Easel.ly. How to Use Your Own Photographs If you enjoy photography, then creating your own photos for content is a great way to incorporate your hobby into your marketing. Take your camera everywhere you go to capture images that could be used for future pieces of content. For example, if you write about local marketing, then photos of local businesses would be great literal options. If you like to inject some humor into your content, take photos of things that would be funny. Any opportunity to photograph a scene with words can also come in handy for content. The best part about using your own photography is that you dont have to be a professional photographer with expensive equipment and software to create great photos. You can simply use your smartphone and free apps like Aviary to edit the photos you create, right on your device. You dont have to be a professional photographer to create great photos. @kikolaniFor those who do have a digital camera, you can do simple editing work (such as cropping your images) in free programs like Gimp. For those who want to do more advanced editing, such as adjusting brightness, contrast, color balance, saturation, clarity, and built-in presets, there is Adobe Lightroom. It has lots of great features for photo editing without the complexity of Photoshop. Best of all, thanks to the Adobe Creative Cloud, if you do want Photoshop, you pay a monthly access fee as opposed to hundreds of dollars up front. For example, you can take Photoshop and Lightroom for a 30-day free trial, and then pay for $9.99 per month. How to Create Memes Speaking of using your own photography, if youre a fan of memes, you can create your own with your photographs. Start by going to the all famous Cheezburger site and click on the Create link at the top right. To add a simple caption, choose the Add a caption option. Upload your photo, and then select it to add some captions. The result? Your own meme! Captions can help you turn almost any image into one that is relevant to the piece of content you are writing. The best part is people love them! I created one for a post a while back using a photo of my newest adopted family member a sweet little black and white kitten. It resulted in a lot of pins.

Thoughts Essay Example | Topics and Well Written Essays - 1000 words

Thoughts - Essay Example The search that can be acceptable among all the people should define clearly what is involved and what is not. This will save the members of society from the intentional interference by the police. The current use of domestic drones has risked the people’s privacy a great deal (Lyle, 2012). Since they are very small and invisible, they can be anywhere anytime. This makes people insecure as their most private details can be easily accessed. The police have been trespassing people’s private places without and searched all places without permission from the owner (Supreme Court of the United States, 2012). They have as well seized private properties in the name of being abandoned. This is not lawful as it is against the rights of citizens. It tortures the minds of law abiding citizens as it does not differentiate between criminals and the obedient citizens. Through this form of search in place, many innocent people have been held responsible for the crimes they never commi tted (Orin, 2011). This is because if anything forbidden by the law is found in a curb, the immediate residents are held responsible. As the law even maintains that accused person is innocent until proved guilty, the police should wait for the permission from the property owners. ... This will definitely lead to a better meaning of search and hence a new definition. Response to question 2 I agree with this paragraph. The search which has no boundaries is likely to retrieve people’s privacy. This is because it does no abide with the directives of the fourth amendment which states that people should be secure in their persons, effects, papers and houses (Orin, 2011). Any search which does not guarantee people these forms of privacy is classified as intrusion. The boundaries that should be put in place are those which will improve the security of the nation while protecting the privacy rights of the people. The boundaries to be observed in searches should ensure that the unreasonable searches and seizures are not allowed. This will ensure that people’s privacy is effectively respected. These are the boundaries that should be observed in the modern definition of search. As the governments cannot stop collecting information for security reasons, this sho uld be done in a way that respects people’s privacy (Orin, 2011). The use of domestic drones though should be restricted; it should not be eliminated completely because they are crucial in maintaining security (Lyle, 2012). Other technological applications that collect information should not be fixed in private areas so as to avoid collection of information that violates people’s privacy. This way the current definition of search will be the most accurate and beneficial to protect the privacy of all law abiding citizens. This calls for the maintenance of the definition and its application so as to enable the security personnel to respect the privacy of all individuals by making sure that unreasonable

Cloud Computing Essay Example | Topics and Well Written Essays - 1500 words

Cloud Computing - Essay Example Although this technology has many advantages to a global society, it has a number of risks that make it disadvantageous in its application. The development of the cloud computing technology spans a long historical period that has seen it the common phrase today in the in information technology today. In the 1950s the mainframe computer technology had many drawbacks that necessitated the need of sharing resources within computer networks in public institutions. During this time, the mainframe computers were slow and expensive and it was virtually impossible to provide each person with a mainframe computer. Consequently, the need for sharing information arose in public institutions where the number of computers were much less than the number of clients. To achieve this, the static terminals, which were used for communicating but had no processors, were invented to ensure that the CPU clock speed and the resources within the mainframe memory could be shared among various clients. Betwee n the year 1960 and 1990, cloud computing became more common as scientists suggested that it was possible to connect the whole world through the use a few data centers and numb terminals located from all over the world (Furht, and Armando 10). At this stage, this technology was foreseen as an invention that would globalize the world and connect all human beings within a cohesive network. The period between 1990 and 2000 has been a period of rapid transition of cloud computing technology. Telecommunication service providers adopted the virtual private network (VPN) in which their clients could access networks remotely. Also, this was the time when the cloud computing symbol was used by service providers to mark a separation between the core network and the client side of the network. After the proliferation of the internet technology, the internet formed common network where information could be shared and distributed within virtual computer systems. In 2000, companies such as the Am azon modernized their data centers and provided high capacity networks where information could be accessed by many clients in their online presence. Today, this technology has been adopted within the business systems to synchronize global business operations and form high capacity networks that can provide data to all clients in the world (Furht, and Armando 15). Cloud distributors have become popular as they adopt hardware Virtualization and utility computing that have become the drivers of the cloud computing technology. The cloud computing architecture is divided into two ends that separate the storage and the access sides. Strickland (2) regards the two sides of the cloud computing architecture as the front end and the back end. The front end side is constituted by the client’s computer network and the associated applications that facilitate access of the networks. Mozilla Firefox and the internet explorer are just some of the applications that are commonly used by client s to access the internet on the front end. On the other hand, the back end side constitutes the computers, servers and the autonomous data storage systems that allow the formation of a cloud that can be accessed from the front end. The internet forms a link between the front end and the back end as it forms the channel of communication between the clients and storage servers.