Fair value or false accounting 1. How are assets and liabilities measured under IAS 39? Answer: According to IAS 39‚ Financial Instruments: Recognition and Measurement‚ financial instrument are to be stated at their ‘fair value’- defined as ‘the amount for which an asset could be exchanged‚ or a liability settled‚ between knowledgeable‚ willing parties in an arm’s length transaction’. ‘If the market for a financial instrument is not active‚ an entity establishes a fair value
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their results may be prepared. Book-keeping and accounting are not synonymous terms‚ but are very different from each other. Book-keeping is concerned only with the recording of financial transactions in a systematic manner. Book-keeping is of clerical nature‚ whereas accounting relates to an advanced stage. Accounting includes recording‚ classifying‚ summarizing‚ analyzing and interpreting the financial data. Define accounting equation approach for book-keeping In order to keep books in balance
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The Social Learning Theory Approach can be defined as learning behaviour from observing other people and how they are reinforced. This approach represents a shift from radical behaviourism as conditioning can’t account for all learning. The mental and cognitive processes play an important role in the Social Learning Theory as it is based on storing the behaviour along with the positive reinforcement we have seen in our memory and learning to do the behaviour this way‚ expecting the same reinforcement
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principle that I have chosen is that of the rights theory approach. The Rights Theory managing approach in the corporate world can also help advance a career by providing others with the opportunity to be free in their religious and personal beliefs and rights as a human being. In doing so‚ a manager can earn trust‚ provide motivational encouragement‚ and build relationships within the corporation. However‚ because privacy can be an issue with this approach‚ this may have a negative consequence to a manager’s
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View from PAT Positive accounting is to set some hypothesis which could affect accounting practice based on economic theory‚ using scientific methodology to do research and test those hypothesis. Simply speaking‚ it applied empirical research to accounting field. Positive Accounting focus on questions like “what is”‚ different from Normative Accounting which focus on questions like “what should be ”. Compare those two accounting theory‚ positive accounting theory is more scientific. Watts and Zimmerman(1986)
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I have read and understood the penalties involved if I do not abide by the rules outlined on the back of this examination paper. Student Signature: Student ID Number Course: Subject Area: Catalog Number: Paper Number: Component: Theory of Accounting ACCT 29083 1 ALL Components Duration: Perusal Time: Lecturer: Moderator: 180 minutes 15 minutes Sheikh Rahman (FBI) Stacey Cowan Restrictions: Closed Book Contact Number: Contact Number: (03) 8662 0810 (07) 4150
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Recognition & Theories of Accounting The Joint Project Revenue recognition requirements in US generally accepted accounting principles (GAAP) differ from those in International Financial Reporting Standards (IFRSs); the former consists of broad concepts whereas IFRSs contain fewer standards‚ but applying the two main standards to complex transactions were difficult and needed improvement (Australian Accounting Standards Board‚ 2010). Accordingly‚ the International Accounting Standards Board (IASB)
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MONASH UNIVERSITY SEMSTER 1 – YEAR 2011 AFW 3040 – ACCOUNTING THEORY BY: SARAH WONG Assignment 2 – 1500-word Essay Topic: How social and environmental reporting practices undertaken by companies highlight the limitations of the conceptual framework. Introduction: Accountancy has always been concerned with mainly the accountability of directors to shareholders and companies to creditors. As companies grow larger and become more integrated with the society‚ this call for a focus towards sustainability
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great concern that the accounting profession must find a common theory in order to address and put the issue at rest. This therefore‚ has called for the study of this topic under review “the demand for and supply of accounting theories: the market for excuses. As a result of this several questions have been raised. For instance‚ the question of why accounting theories are predominantly normative has been put forward by this article? Secondly‚ why no single theory in accounting profession that is generally
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BUS310 ACCOUNTING THEORY AND ACCOUNTABILITY WORKSHOP 1 SOLUTIONS 1) GHHT: Chapter 1: Theory in Action 1.1 The article describes how a particular theoretical approach has been replaced by another. Explain why one theory replaces another‚ and who‚ or what‚ determines whether an existing theory survives. A theory is primarily meant to explain or predict an event‚ behaviour or outcome. Proponents of a theory look for evidence to support the theory. This evidence should be independently observed
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