Wednesday, February 27, 2019
Accounting Theory and Practice Essay
promontory 1 interrogatory 1.8What is the difference between make growment a theory by institution and developing a theory by deduction? movement 2 misgiving 1.9Is the workplace of pecuniary write up theory a beetle off of time for report students? let off your answer. dubiety 3 irresolution 1.26Would you avert as insignifi johnt and delectationless a demonstrable theory of report on the basis that in a particular research study the results derived failed to support the hypotheses and the related theory? Explain your answer. inquire 4 read/write head 1.27 (NEW)The International history Standards display board has a number of roles, including formulating be trites and developing a conceptual framework. Is the work they do in developing an accounting measuring stick or the conceptual framework normative or positive in nature? nous 5 disbelief 1.33 (NEW)In this chapter we provided quotes from Gray, Owen and Adams (2010), in which they discuss an app atomic n umber 18nt pushing phenomenon that seems to be occurring in respect of the selection and use of particular theories. They tell, there has been a strange herding tendency, especi completelyy around genuineness theory, as well as stating that they also fuck off a sneaking feeling that institutional theory may be access up fast as the next theory around which to herd.What do they mean by this app arnt practice of herding, and what are twain(prenominal) possible advantages and disadvantages that are related to this practice? suspense 6 header 1.35 (NEW)Do we re tout ensembley need fiscal accounting theory if all we are raiseed in doing is developing accounting standards?tutorial 2 Semester 2 2014Deegan Topics 2 and 3The financial reporting purlieu and standard of financial accountingQUESTION 1 brain 2.3Do you see that the media portray accounting numbers, such as profits, as some bearing of hard and objective performance indicator? wherefore do you rec everywhere th ey king do this, and, if they do, what are some of the implications that might arise as a result of this approach?QUESTION 2 enquiry 2.7Is it attach to look at changes or trends in corporate profits over time without making some(prenominal) adjustments? Explain your answer.QUESTION 3 promontory 2.14If regulators acted in accordance with predictions provided by the private interest theory of regulation, which assumes that all individuals (including politicians and regulators) are motivated by their own economic self-interest, what is the alikelihood of the foot of regulations aimed at reducing the problems associated with climate change in particular if business corporations unconnected such regulations?QUESTION 4 Question 3.7Is regulation more potence to be required in respect of public goods than other goods? Why?QUESTION 5 Question 3.30Accounting headline 3.9 (SEE END OF TUTORIAL 2 QUESTIONS) discusses how European banks were able to lobby the European Union (EU) so as to be regulated by a watered shore version of the accounting standard IAS 39. Explain whether the decision of the EU to pass over a watered down version of the standard is consistent with a public interest theory of regulation perspective, or whether it can be explained by an alternative theoretical perspective (which you should attempt to identify).QUESTION 6 Question 3.35Let us assume that the government has bring about concerned that existing disclosure regulation tends to fixate on the financial performance of organisations but fails to address other aspects of corporate performance, including a mischance to provide breeding about corporate neighborly and environmental impacts as well as about various initiatives and investments an organisation has undertaken to improve its social and environmental performance. As such, the government has decided to introduce legislation that go out require business corporations to provide teaching about the social and environmental impacts of their operations, as well as the social and environmental initiatives undertaken by the corporations.You are required to do the following (a) Explain from a public interest theory perspective the rationale for the government introducing the legislation and how the government pass on ultimately assess whether any proposed legislation should actually be introduced. (b) bid from a capture theory perspective the types of constituents that will benefit in the long run from any social and environmental disclosure legislation. (c) look for from an economic interest group theory perspective whether any potential legislation to be introduced will lead to an increase in the answerability of corporations in relation to their social and environmental performance despite any implications that this increased corporate accountability might pull in for the financial triumph of large but heavily polluting organisations.TUTORIAL 3 Semester 2 2014Deegan Topics 4 and 5International ac counting and The conceptual framework projectQUESTION 1 Question 4.19It is often argued that the accounting standards of the FASB are rule-based, whereas the accounting standards issued by the IASB are principles-based. Rules-based standards by their nature can be quite complex, particularly if they seek to cover as many situations as possible. Do you conjecture it would be easier to circumvent the requirements of rules-based or principles-based accounting standards?QUESTION 2 Question 4.22Does the standardisation of accounting standards on a global basis necessarily equate with a standardisation in accounting practice?QUESTION 3 Question 4.25In considering the relevancy of IFRS to developing countries, Chand and White (2007, p.606) state (see below). Explain the reasons behind Chand and Whites claim. While the forces of globalization and overlap are moving accounting practices towards a unified, or at least, accord regulatory framework for financial reporting, this is unlikel y to best serve the various interests of disparate user groups of financial reports.QUESTION 4 Question 4.27 fruitcake (2006, p. 17) makes the following comment (below). Explain the basis of Balls comments. In sum, even a cursory re catch of the political and economic alteration among, IFRS-adopting nations, and of their past and present financial reporting practices, makes the notion that uniform standards solely will produce uniform financial reporting seem nave.QUESTION 5 Question 4.30 (NEW)In continental European countries, front to the adoption of IFRS, the domestic accounting rules were typically much more line up with local taxation regulation than would be the case in countries like the United States, the United Kingdom, Canada, Australia or New Zealand. Why do you depend this could have been the case?QUESTION 6 Topic 5 Question 6.7Conceptual framework projects identify a number of qualitative criteria that financial information should possess if it is to be useful fo r economic decision making. deuce such attributes are neutrality and representational skinnyness? Do you see that financial information can, in reality be neutral and representationally faithful? Explain your answer.QUESTION 7 Topic 5 Question 6.10The deuce main qualitative characteristics that financial information should possess have been identify as relevancy and reliability. Is one more important than the other, or are they equally important? TUTORIAL 4 Semester 2 2014Deegan Topic 6Chapter 10 Reactions of capital market places to financial reportingQUESTION 1 Question 10.4 (NEW)What is an event study and why would an event study be of relevance to an accounting standard-setter?QUESTION 2 Question 10.9 (NEW)If individuals have access to insider information and are able to make large gains on a securities market as a result of using information that is not widely known, then is this an indication that the market is inefficient?QUESTION 3 Question 10.16 (NEW)Evidence shows that consider prices might not fully react to financial accounting information immediately and that abnormal returns might persist for a period of time following the release of information (a case of post-announcement hurl). Does this indicate that securities markets are not efficient and that assumptions about market capacity should be rejected?QUESTION 4 Question 10.17If an organisations operations rely heavily on the specialised expertise of its forethought team, would you expect there to be a higher or a lowercorrespondence between the net assets recognised in the asseveration of financial position (balance sheet), and the total market value of the organisations securities, relative to an organisation that relies more on tangible assets (for example, commonly utilise plant and machinery) to generate its income?QUESTION 5 Question 10.24Refer to Accounting Headline 10.3 (SEE END OF TUTORIAL 4 QUESTIONS) and explain why investors might have reacted to the false rumour. Is the reaction of investors to this false rumour consistent with the visualise that the capital market is efficient or inefficient?QUESTION 6 Question 10.25Review Accounting Headline 10.7 (SEE END OF TUTORIAL 4 QUESTIONS) and explain the reason for the change in the price of Wesfarmers shares. Also, what might have caused the price changes in the shares in the other retail organisations?QUESTION 7 Question 10.28Read Accounting Headline 10.10 (SEE END OF TUTORIAL 4 QUESTIONS) and, relying on some of the capital markets studies considered in this chapter, explain why the share prices of the pharmaceutical companies might have reacted in the way they did.TUTORIAL 5 Semester 2 2014Deegan Topics 8 and 9 Accounting for Corporate Social ResponsibilitiesQUESTION 1 Question 8.1Explain the notion of a social contract, and what relevance the social contract has with respect to the legitimacy of an organisation.QUESTION 2 Question 8.7If an organization was involved in a major accident or in cident, would you expect it to use vehicles such as an annual report or a sustainabilityreport to try to explain the incident? If so, explain how and why it would use reports in this way.QUESTION 3 Question 8.21 (NEW)Chapter 8 divided up Stakeholder scheme into the ethical branch and the music directorial branch. Explain the differences between the ii branches in terms of the alternative perspectives about when information will, or should, be provided by an organisation.QUESTION 4 Question 9.1What has the environment got to do with accounting (NEW)?QUESTION 5 Question 9.9What is an externality, and why do financial accounting practices typically ignoreQUESTION 6 Question 9.20 (NEW)Explain what is meant by the following statementIn the long term, environmental sustainability is necessary for both social and economic sustainability, so attention to minimising impacts in respect of the environment is necessary to ensure a sustainable social and economic future.QUESTION 7 Quest ion 9.35 (NEW)What is a cap-and-trade system and what accounting issues does it create?QUESTION 8What is international integrated reporting and how does it differ from the current financial reporting system we have. TUTORIAL 6 Semester 2 2014Topic 7 Positive accounting theoryQUESTION 1 Question 7.5Explain why a decision made in London by members of the InternationalAccounting Standards Board and incorporated within an accounting standard could influence the business operating strategies employed by a manager in Melbourne, Australia.QUESTION 2 Question 7.10As part of efforts to develop a revised Conceptual Framework for Financial Reporting, the IASB is currently canvas alternative approaches for measuring the assets and liabilities of reporting entities. In relation to asset amount it appears that fair value is a favoured option of the IASB. In this regard, would researchers who embrace the view that accounting plays a vital role in reducing the spotting costs of an organisatio n favour the adoption of fair value in all situations? Carefully explain your answer.QUESTION 3 Question 7.12Would managers who have negotiated debt contracts with accounting-based covenants based around rolling generally accepted accounting principles be relatively more likely to lobby an accounting standard-setter about a proposed accounting standard than would a manager from a firm who has negotiated accounting-based debt covenants that use frozen GAAP. Why or why not? Illustrate using AASB2 donation Based Payments and assume that it is the year 2003.QUESTION 4 Question 7.15Do you think the policy decisions made by members of the International Accounting Standards Board would or should give consideration to the insights provided by Positive Accounting Theory? Why?QUESTION 5 Question 7.17If senior managers within a company were rewarded by way of accounting-based bonus plans then would they, or the owners/shareholders (or both), pick out the use of conservative accounting met hods? Explain the reasoning for your answer.QUESTION 6 Question 10.22Accepted assumptions about market efficiency mean that it is the informationcontent of disclosure, and not the form of the disclosure, that is valued by the market. Therefore it should not matter whether information is disclosed within the notes to the financial statements, or in the financial statements themselves. If this is true, then why would managers care if something such as a lease liability is disclosed only in the notes, or include within the liabilities disclosed within the balance sheet?