Reflective Essay on Accounting Theory and Practice.
Learning Log
Week -2
Lecture:
In this lecture I had the understanding, why accounting bodies are so heavily regulated by the government. After the corporate collapse, accounting body lost the trust of public. Our work was not transparent and therefore, was no longer reliable.
Regulator body such as ASIC, AASB, FRC and ASX are formed after the corporate collapse. ASIC is the corporate ‘watch dog’ who monitors FRC, AASB and office of AASB.
Why we need regulation? Because it is human nature to find loop-hole to go around the regulation and make extra profit.
Tutorial:
We have done poster presentation in the class and had to relate the picture with a specific accounting theory. I related my poster with accounting in “reliability” area. Moreover, after discussing with my group I got to know how everyone view “accounting” differently.
Week-3
Lecture:
In this lecture I got to learn in more depth about conceptual framework. Based on my understanding, it’s about decision usefulness in preparing financial report. Moreover, we got to learn about the history of development of conceptual work and how it moved from one stage to another, induction, Normative, Positve and system-based theories.
Lecturer mention about CoCoA as a very fine idea, but, it would be to narrow, because owner has to find a buyer. CoCoA is about the organization capacity to adapt the changing environment of the business. Organization should shift to new area of business as early as possible if they cannot compete in the existing business market. I totally agree with the book, if CoCoA was implemented it would have involved in fundamental and major shift in accounting recording process, which itself could lead to many unacceptable social and economic consequences. I am still a bit confused with CoCoA. Under CoCoA approach, when a company sell its business, transaction gets recorded in balance sheet but in income statement. Is it not a income for the owner?
Tutorial:
This week tutorial was
Week -2
Lecture:
In this lecture I had the understanding, why accounting bodies are so heavily regulated by the government. After the corporate collapse, accounting body lost the trust of public. Our work was not transparent and therefore, was no longer reliable.
Regulator body such as ASIC, AASB, FRC and ASX are formed after the corporate collapse. ASIC is the corporate ‘watch dog’ who monitors FRC, AASB and office of AASB.
Why we need regulation? Because it is human nature to find loop-hole to go around the regulation and make extra profit.
Tutorial:
We have done poster presentation in the class and had to relate the picture with a specific accounting theory. I related my poster with accounting in “reliability” area. Moreover, after discussing with my group I got to know how everyone view “accounting” differently.
Week-3
Lecture:
In this lecture I got to learn in more depth about conceptual framework. Based on my understanding, it’s about decision usefulness in preparing financial report. Moreover, we got to learn about the history of development of conceptual work and how it moved from one stage to another, induction, Normative, Positve and system-based theories.
Lecturer mention about CoCoA as a very fine idea, but, it would be to narrow, because owner has to find a buyer. CoCoA is about the organization capacity to adapt the changing environment of the business. Organization should shift to new area of business as early as possible if they cannot compete in the existing business market. I totally agree with the book, if CoCoA was implemented it would have involved in fundamental and major shift in accounting recording process, which itself could lead to many unacceptable social and economic consequences. I am still a bit confused with CoCoA. Under CoCoA approach, when a company sell its business, transaction gets recorded in balance sheet but in income statement. Is it not a income for the owner?
Tutorial:
This week tutorial was