TACC406 Accounting Theory 会计理论 assignment代写
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TACC406 Accounting Theory 会计理论 assignment代写
TACC406 Group assignment information
Value: 30% of overall assessment
(20% for the written work and 10% for the presentation)
Due date: The written work due in Week 9
The presentation due in week 10
(please see details below)
Word limit: 2500 words
Guidelines:
TACC406 Accounting Theory 会计理论 assignment代写
GODFREY
HODGSON
HOLMES
TARCA
CHAPTER 1
INTRODUCTION
Overview of Accounting Theory
What is a theory?
Hendriksen’s definition:
…the coherent set of hypothetical, conceptual and pragmatic principles forming the general framework of reference for a field of inquiry.
Overview of Accounting Theory
What is an accounting theory?
Hendriksen’s definition:
…logical reasoning in the form of a set of broad principles that
provide a general framework of reference by which accounting practice can be evaluated and
guide the development of new practices and procedures.
Overview of Accounting Theory
Whether a theory is accepted depends on how:
well it explains and predicts reality
well it is constructed both theoretically and empirically
acceptable its implications are
Overview of Accounting Theory
Accounting theory is a modern concept compared to mathematics or physics
Even Pacioli’s treatise on double-entry accounting focused on documenting practice and did not explain the underlying theoretical basis for it
Overview of Accounting Theory
The development of accounting
theory has been mostly unstructured
Chambers:
Accounting has frequently been described as a body of practices which have been developed in response to practical needs rather than by deliberate and systematic thinking.
Overview of Accounting Theory
Was developed to resolve problems as they arose – reactive
Ad hoc approach
Led to inconsistencies in practice
e.g. different depreciation methods
Accounting standard setting
Conceptual framework projects have not resolved inconsistency in practice
Pre-theory (1400s – 1800)
Goldberg:
No theory of accounting was devised from the time of Pacioli down to the opening of the nineteenth century.
Pragmatic accounting (1800– 1955)
The ‘general scientific period’
based on empirical observation of practice
provided an explanation of accounting practice
focused on the existing ‘viewpoint’ of accounting
Normative accounting (1956-1970)
Sought to establish ‘norms’ for the best accounting practice
Focused on what should be (the ideal) v. what is
Normative accounting (1956-1970)
Degenerated into battles between competing viewpoints
Two groups dominated:
conceptual framework proponents
critics of historical cost
Normative accounting (1956-1970)
Factors prompting the demise of the normative period include:
the unlikelihood of one particular normative theory being generally accepted
the application of financial economic principles
the availability of empirical data and new testing methods
Normative accounting (1956-1970)
The major criticisms of normative theories were:
they do not necessarily involve empirical hypothesis testing
they are based on value judgements
Positive accounting (1950 to the present day)
A shift to a new form of empiricism called ‘positive theory’
Had its origins in the ‘general scientific period’
It seeks to explain the accounting practices being observed
Positive accounting (1950 to the present day)
Its objective is to explain and predict accounting practice
e.g. the bonus plan hypothesis
Positive accounting (1950 to the present day)
It helps predict the reactions of ‘players’, such as shareholders, to the actions of managers and to reported accounting information
Positive accounting (1950 to the present day)
Major deficiencies are:
‘wealth maximisation’ has become the answer to explain all accounting practices and reported information
it relies excessively on agency theory and dubious assumptions about the efficiency of markets
Positive accounting (1950 to the present day)
Behavioural research:
concerned with the sociological implications of accounting numbers and the associated actions of ‘key players’
emerged in the 1950s
despite growing acceptance since the 1980s, positive accounting theory still dominates
Recent developments
Academic and professional developments in accounting theory have tended to take different approaches
Academic research focuses on capital markets, agency theory and behavioural aspects
The profession has sought a more normative approach – what accounting practices should be adopted
Recent developments
Recent developments
Conceptual framework – resurrected in 1980s
states the nature and purpose of financial reporting
Establishes criteria for deciding between alternative accounting practices
SACs 1–4
Recent developments
Conceptual framework – Recent Developments
Joint project between IASB & FASB
International harmonisation of accounting practices through a single consistent set of international financial reporting standards (IFRS)
Recent developments
The conceptual framework underpinning the IFRS favours a move toward
accounting practices that provide information for enhancing decision making by investors and others
recognising all gains and losses in the accounting periods in which they occur
measurement using exit values
Content outline
Part 1: Accounting theory (chapters 1 – 3)
Part 2: Theory contributing to practice (chapters 4 – 10)
Part 3: Accounting and research (chapters 11 – 14)
Summary
Accounting theory
Major periods of accounting theory development
Normative accounting
Positive accounting
Conceptual framework
IFRS
Key terms and concepts
Theory
Accounting theory
Normative theory
Positive theory
Behavioural theory
Conceptual framework
IFRS
• Students are to form groups of 5, each student’s name must be recorded on the coversheet
otherwise that student will receive zero for the assignment.
• Students must submit the group assignment online (by 5 pm on Friday 05 May 2017 for
online submission) and a hard copy to your lecturer during class time (on Tuesday 2 May
2017 for stream2 and on Friday 05 May 2017 for Stream 1). Late penalty at 10% per day.
• The assignment must be word-processed, single-spaced, and printed on one side only of A4
paper. The word size should be 12 with ‘Times new roman’ font type.
• Harvard referencing is to be used.
• Only the group leader should submit online.
• The group presentation will be held during class time in week 10. Students will present as
a group, and marks for the presentation will be awarded individually.
• Duration for presentation: 2-3 minutes for each student and maximum 15 minutes for a
group
• All group members must attend and present, otherwise you will lose the 10% of
presentation mark
Enjoy!
Question:
IASB has issued International Financial Reporting Standards (IFRS) that are being adopted
by nations all over the world. Carefully read the article below:
Ball, R. (2006), “international financial reporting standards (IFRS); pros and cons for
investors”, Accounting and Business Research, International Accounting Policy Forum, pp.
5-27.
Critically discuss any issue raised in the article. (2500 words)
The objective of the assignment is to develop your critical thinking, technical research and
written communication skills. You need to investigate and analyse accounting literature and
recent developments on IFRS adoption. You are required to use extensive references to
support your discussion.
TACC406 Accounting Theory 会计理论 assignment代写
