BKAF 3083 ACCOUNTING THEORY AND PRACTICE Individual Assignment 1 1. Explain 8 levels of conceptual framework Level | Elements | Explanation | 1.Border of discipline / authority | * Definition of financial reporting | It defines the financial record of the business activities. | 2. Subject | * Definition of the reporting entity | It defines the reporting entities where the users are dependent on their financial statements to make decision. | 3. Objective | * Objective | It is
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Compare and contrast normative and positive accounting approaches: Definition of PAT: Watts and Zimmerman (1986) defined Pat as a theory that seeks to explain and predicts particular phenomenon. It is concerned with explaining accounting practice. The three basic hypotheses as outlined by Watts and Zimmerman (1978) underlying PAT are: 1. Bonus plan hypothesis: The bonus plan hypothesis is that managers of firms with bonus plans are more likely to use accounting methods that increase current period reported
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Module 1: Accounting under ideal conditions Ideal conditions; certainty and uncertainty (including differences & similarities)‚ dividend irrelevancy‚ arbitrage‚ accretion of discount‚ abnormal earnings RRA - SFAS69; weaknesses of RRA (relevant but not as reliable) Historical Accounting Revisited mixed measurement model‚ (relatively reliable but lacks relevance)‚ revenue recognition‚ recognition lag Relevance VS Reliability -> tradeoffs (Without ideal conditions‚ complete relevance &
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Accounting Standards Board University of Phoenix Accounting Theory and Research Jun 13‚ 2009 Accounting Standards Board To address the increasing challenges of legislating those governs our society today‚ “countries all over the world have begun to outsource rulemaking to bodies consisting of people familiar with the subject. For that reason‚ policymakers rely on private entities to establish financial accounting and reporting standards” (Donald Kieso‚ 2003‚ Intermediate Accounting). The
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Accounting Theory Questions 1. what is positive accounting theory? how does it differ from normative accounting theory? what was/were the major dissatisfaction(s) with normative accounting theory which led to the development of a positive theory accounting? 2. Explain the meaning of an efficient market. what is meant by the following terms: weak-form efficiency‚ semistrong-form efficiency‚ strong-form efficiency? which form is the most important to accounting research? why? 3 Explain the important
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CO2 Capture Technologies and Opportunities in Canada “Strawman Document for CO2 capture and Storage (CC&S) Technology Roadmap” Murlidhar Gupta‚ Irene Coyle and Kelly Thambimuthu CANMET Energy Technology Centre Natural Resources Canada 1st Canadian CC&S Technology Roadmap Workshop‚ 18-19 September 2003‚ Calgary‚ Alberta‚ Canada 1 Contents 1. 2. 3. 4. Introduction CO2 emission profile in Canada How to capture CO2 Types of CO2 capture technologies 4.1 Chemical/physical absorption
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The Theory of the Business Abstract Peter Drucker’s article‚ ‘The Theory of Business’ discusses the different theories and assumptions many businesses‚ corporations‚ industries and organizations were once founded and run upon and the strengths and weaknesses that came with those theories. Drucker points out how these former theories and assumptions may have once provided great successes for many businesses‚ such as GM‚ now pose upcoming problems for current businesses that are not willing to
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ACCT3003 Issues in Accounting Theory SP5 2010 Topic 4: Heritage and biological assets. The following question has some minor changes due to amendments to AASB 141 which removed reference to ‘estimated point of sale costs” and replaced it with “costs to sell”. 9.22 In 2005‚ Nambour Limited established and commenced operation of a mango farm. The trees were planted in 2005 and began producing saleable mangoes in 2011. On 30 June 2012‚ 90% of the mangoes are sold‚ one week after they were
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Slide 1 ACCOUNTING THEORY & CONTEMORARY ISSUES (AT1) MODULE ONE Slide 2 ACCOUNTING UNDER IDEAL CONDITIONS Part 1 - Foundation items re the course Part 2 - Present value accounting under certainty Part 3 - Present value accounting under uncertainty Part 4 - Reserve recognition accounting Part 5 - Examination question examples Part 6 - Historical cost accounting Lecture by: Dr. A. L. Dartnell‚ FCGA Year 2009 - 2010 2 Slide 3 PART 1 Foundation Items re the Course Different Course
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-the sector within which the -entity operates -The purpose for which the entity was created -The manner in which the entity is constituted. Conceptual framework Problem -Lack of a general theory -Permissiveness of accounting practice -Inconsistency of practices Needs -2 or more methods of accounting are accepted for the same facts -Reserves are used to artificially smooth earnings fluctuations -Deferrals are followed by ‘big bath’ write offs A set of inter related concepts which will
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