Thursday, June 29, 2006

My first Buiding ( Bridge )

Ha! How about seeking inspiration from the first ever building i drew and on the way to be seen in the Brindabella Business Park in Canberra Airport? The steel work is up and tomorrow they are pouring the bondek slab. I am going on site tomorrow to see IT. Getting really excited because if i could stand next to the steel beam, it would be more than half my height measuring 800mm deep spanding across two existing building. Will post picture once i get them!


Have i mentioned that i LOVE everything IKEA. But after reading this article, i think i will think twice about stepping into any outlet next time. How do u deal with the irony that he is so smart yet so dodgy?

Flat-pack accounting
May 11th 2006

From The Economist print edition

Forget about the Gates Foundation. The world's biggest charity owns IKEA—and is
devoted to interior design FEW tasks are more exasperating than trying to assemble flat-pack furniture from IKEA. But even that is simple compared with piecing together the accounts of the world's largest homefurnishing retailer. Much has been written about IKEA's remarkably effective retail formula. The Economist has investigated the group's no less astonishing finances.
What emerges is an outfit that ingeniously exploits the quirks of different jurisdictions to create
a charity, dedicated to a somewhat banal cause, that is not only the world's richest foundation,
but is at the moment also one of its least generous. The overall set-up of IKEA minimises tax
and disclosure, handsomely rewards the founding Kamprad family and makes IKEA immune to
a takeover. And if that seems too good to be true, it is: these arrangements are extremely
hard to undo. The benefits from all this ingenuity come at the price of a huge constraint on the
successors to Ingvar Kamprad, the store's founder (pictured above), to do with IKEA as they
see fit.

Although IKEA is one of Sweden's best-known exports, it has not in a strict legal sense been
Swedish since the early 1980s. The store has made its name by supplying Scandinavian
designs at Asian prices. Unusually among retailers, it has managed its international expansion
without stumbling. Indeed, its brand—which stands for clean, green and attractive design and
value for money—is as potent today as it has been at any time in more than 50 years in

The parent for all IKEA companies—the operator of 207 of the 235 worldwide IKEA stores—is
Ingka Holding, a private Dutch-registered company. Ingka Holding, in turn, belongs entirely to
Stichting Ingka Foundation. This is a Dutch-registered, tax-exempt, non-profit-making legal
entity, which was given the shares of Mr Kamprad in 1982. Stichtingen, or foundations, are the
most common form of not-for-profit organisation in the Netherlands; tens of thousands of
them are registered.

Most Dutch stichtingen are tiny, but if Stichting Ingka Foundation were listed it would be one of
the Netherlands' ten largest companies by market value. Its main asset is the Ingka Holding
group, which is conservatively financed and highly profitable: post-tax profits were €1.4 billion
($1.7 billion)—an impressive margin of nearly 11% on sales of €12.8 billion—in the year to
August 31st 2004, the latest year for which the group has filed accounts.
Valuing the Inkga Holding group is awkward, because IKEA has no direct competitors that
operate globally. Shares in Target, a large, successful chain of stores in the United States that
makes a fifth of its sales from home furnishings, are priced at 20 times the store's latest fullyear
earnings. Using that price/earnings ratio, the Ingka Holding group is worth €28 billion
($36 billion).

This is probably conservative, given IKEA's growth prospects. Sales—the only financial
information that IKEA releases—for the year to August 31st 2005 were €14.8 billion, 15.6% up
on a year earlier. And there is plenty of scope for more stores. Ingka Holding has only 26
outlets in America. By contrast, in Europe, a market of comparable size, it has over 160,
accounting for more than 80% of its total turnover. In April IKEA opened its first store in

If Stichting Ingka Foundation has net worth of at least $36 billion it would be the world's
wealthiest charity. Its value easily exceeds the $26.9 billion shown in the latest published
accounts of the Bill & Melinda Gates Foundation, which is commonly awarded that accolade.
Measured by good works, however, the Gates Foundation wins hands down. It devotes most of
its resources to curing the diseases of the world's poor. By contrast the Kamprad billions are
dedicated to “innovation in the field of architectural and interior design”. The articles of
association of Stichting Ingka Foundation, a public record in the Netherlands, state that this
object cannot be amended. Even a Dutch court can make only minor changes to the stichting's

The Kamprad foundations compare poorly with the Gates Foundation
in other ways, too. The American charity operates transparently,
publishing, for instance, details of every grant it makes. But Dutch
foundations are very loosely regulated and are subject to little or no
third-party oversight. They are not, for instance, legally obliged to
publish their accounts.

Under its articles, Stichting Ingka Foundation channels its funds to
Stichting IKEA Foundation, another Dutch-registered foundation with
identical aims, and which actually doles out money for worthy interior-design ideas. But the
second foundation does not publish any information either. So just how—or whether—Stichting
Ingka Foundation has spent the €1.6 billion that it collected in dividends from Ingka Holding in
1998-2003 remains hidden from view.

IKEA says only that this money is used for charitable purposes and “for investing long-term in
order to build a reserve for securing the IKEA group, in case of any future capital
requirements.” IKEA adds that in the past two years donations have been concentrated on the
Lund Institute of Technology in Sweden. The Lund Institute says it has recently received
SKr12.5m ($1.7m) a year from Stichting Ikea (which also gave the institute a lump sum of
SKr55m in the late 1990s). That is barely a rounding error in the foundation's assets. Clearly,
the world of interior design is being tragically deprived, as the foundation devotes itself to
building its own reserves in case IKEA needs capital.

Although Mr Kamprad has given up ownership of IKEA, the stichting means that his control
over the group is absolutely secure. A five-person executive committee, chaired by Mr
Kamprad, runs the foundation. This committee appoints the boards of Ingka Holding, approves
any changes to the company's statutes, and has pre-emption rights on new share issues.
Mr Kamprad's wife and a Swiss lawyer have also been members of this committee, which takes
most of its decisions by simple majority, since the foundation was set up. When one member
of the committee quits or dies, the remaining four appoint his replacement. In other words, Mr
Kamprad is able to exercise control of Ingka Holding as if he were still its owner. In theory,
nothing can happen at IKEA without the committee's agreement.

That control is so tight that not even Mr Kamprad's heirs can loosen it after his death. The
foundation's objects require it to “obtain and manage” shares in the Ingka Holding group.
Other clauses of its articles require the foundation to manage its shareholding in a way to
ensure “the continuity and growth” of the IKEA group. The shares can be sold only to another
foundation with the same objects and executive committee, and the foundation can be
dissolved only through insolvency.

Yet, though control over IKEA is locked up, the money is not. Mr Kamprad left a trapdoor for
getting funds out of the business, even if its ownership and control cannot change. The IKEA
trademark and concept is owned by Inter IKEA Systems, another private Dutch company, but
not part of the Ingka Holding group. Its parent company is Inter IKEA Holding, registered in
Luxembourg. This, in turn, belongs to an identically named company in the Netherlands
Antilles, run by a trust company in CuraƧao. Although the beneficial owners remain hidden
from view—IKEA refuses to identify them—they are almost certain to be members of the
Kamprad family.
Inter IKEA earns its money from the franchise agreements it has with
each IKEA store. These are extremely lucrative: IKEA says that all
franchisees pay 3% of sales. The Ingka Holding group, the company
owned by the Kamprad foundation, is the biggest franchisee, with its
207 stores; other franchisees run the remaining 28 stores, which are
mainly in the Middle East and Asia.

How much money does Inter IKEA Systems make? Its results are
included in its parent company's accounts filed in Luxembourg. These
show that in 2004 the Inter IKEA group collected €631m in franchise
fees and made pre-tax profits of €225m. This profit is after deducting
€590m of “other operating charges”.

Although IKEA would not explain these charges, because its policy is not to comment on the
accounts of a private group of companies, Inter IKEA appears to make large payments to I.I.
Holding, another Luxembourg-registered group that is almost certain to be controlled by the
Kamprad family and which made a profit of €328m in 2004.

Together these companies had nearly €11.9 billion in cash and securities at the end of 2004,
even after I.I. Holding paid out a dividend of nearly €800m during the year. Most of this money has undoubtedly come from the collection of franchise fees. In total, these two groups suffered
tax bills of a mere €19m in 2004 on their combined profits of €553m. Clearly, the Kamprad
family pays the same meticulous attention to tax avoidance as IKEA does to low prices in its

The IKEA financial system of stichtingen and holding companies is extremely efficient. Even so,
next time you wonder how anyone could have come up with the fiendish plans for a Hensvik
storage unit or a Bjursta sideboard, spare a thought for the Kamprads' accountants.

Friday, June 09, 2006

SHIT Inspired List

Apparently this is not new, but i have only read this today, all because i am inspired by a REAL floating shit in the office female toilet today.
Ghost Shit
You know you've shit. There's shit on the toilet paper, but no shit in the bowl.

Teflon Coated Shit
Comes out so slick, clean and easy that you don't feel it. No traces of shit on the toilet paper, you have to look in the bowl to be sure you did it!

Gooey Shit
This has the consistency of hot tar. You wipe your ass 12 times and it still doesn't come clean. You end up putting toilet paper in your underwear so you don't stain it. This shit leaves permanent skid marks in the toilet.

Second Thought Shit
You're all done wiping your ass and you're about to stand up when you realize've got some more.

Pop a Vein in Your Forehead Shit
This kind is the kind of shit that killed Elvis. It doesn't come until you're all sweaty, trembling and purple from straining so hard.

Bali Belly Shit
You shit so much you lose 5 kilos.

Right Now Shit
You better be within 10 seconds of a toilet. Usually it has its head out before you get your pants down.

King Kong or Commode Choker Shit
This shit is so big that you know it won't go down the toilet unless you break it into smaller chunks. A coat hanger works well. This kind of shit usually happens at someone else's house.

Wet Cheeks Shit
This shit hits the water sideways and makes a BIG splash that gets your ass wet.

Wish Shit
You sit there all cramped up and fart a few times, but no shit!

Cement Block or Oh God Shit
You wish you'd gotten a spinal block before you shit.

Snake Shit
This shit is fairly soft and about as big around as your thumb and at least three feet long.

Cork Shit (Also Known as Floater Shit)
Even after the third flush, it's still floating in there. My god! How do I get rid of it? This shit usually happens at someone else's house.

Mexican Food Shit (also called Screamers)
You'll know it's alright to eat again when your asshole stops burning.

Beer Drunk Shit
This happens the day after the night before. Normally your shit doesn't smell too bad, but this shit is BAD. Usually there's somebody standing outside to use the bathroom. This kind of shit also usually happens at someone else's house.

The Frightened Turtle
The kind of shit that just pokes its head out then quickly goes back in

The Bungee Shit
The kind of shit that just hangs off your ass before it falls into the water.

The Ring of Fire Shit
The kind of shit where you eat really spicy food and your asshole feels like the inside of a cigarette lighter.

The Crippler
The kind of shit where you have to sit on the toilet so long your legs go numb from the waist down.

The Big Bobber
The kind of shit that no matter how many times you flush it always floats back to the surface.

The Shitty Shitty Bang Bang
The kind of shit that hits you when you're trapped in your car in a traffic jam.

The Incredible Hulk Shit
The king of shit that sits in the toilet overnight and mysteriously expands to twice it's normal size.

The Jack the Ripper Shit
The kind of shit that yanks out the hair of your ass as it pushes its way out.

The Party Pooper
The giant shit you take at a party. And when you flush the toilet, you watch in horror as the water starts to rise.

The Toxic Gas Shit
The kind of shit that makes you pass out and fall of the toilet before you finish, and then you wake up in some strange South American town.

Dirty Bowl Shit
The kind of shit that comes out in a million pieces a second, reminiscent of an avalanche - but with rocket propulsion, and splatters all over the toilet bowl.

The Windy City Shit
When you sit down, and fart for so long and hard that you no longer need to take a shit.

Oh Shit! Shit
You shit so much and wipe your ass so furiously you run out of toilet paper and you say OH SHIT!

The Never Ending Shit
It's the shit that keeps running out of your ass like pea, and just when you start wiping your ass your stomach gargles and splash, more shit runs out. This always happens after eating at Kentucky Fried Chicken.

Ouch That Hurt Shit
The type of shit that leaves you feeling like you just hoped onto a bicycle without a seat. Sensation usually lasts hours.

Thursday, June 08, 2006

Inspired Today

Off late, i have been reading up a lot of other people's blog, especially design related, fashion related, blogs with lots of nice graphics, blogs by crafty people, blogs of people who are getting married. Oh, did i tell you that i will be getting married? Yes, the date has been set to 30th September 2006. Lots of days has been spent in front of the computer researching on the dress i want, the theme, the colour of flowers, deco, caterers, marquee hire, celebrant, the list just goes on and on and on. But, the consequences of all these surfing is that i feel the itch to write, to draw, to design , to create, to be imaginative, i am inspired!

I have a feeling that i am at a cross road where i am about to make a very important decision which will change the direction of my life. Maybe i am just day dreaming. But one thing for sure, i want that to happen. My job is rather boring. Sad to say Architecture doesn't inspire me anymore. I don't like to face those engineers. I don't like to deal with plasterboard, door schedule, AutoCad or any other CAD related software. I want to get out of here. The time has come for me to let go. And i think i am ready to let go of all that i have worked hard for the past 8 years.

Where should i go? I have no idea. But, keep the dream alive and it shall come true.