Questions
1. A statement on the objectives of financial statement (i.e. the conceptual framework) has always been recognized as urgent and essential if debate over alternative standards and reporting techniques is to be resolved by reason and logic.
a. Explain the purpose of a conceptual framework
As a defense against political interference in the neutrality of accounting reports. Accounting policies can only be implemented by making a value judgment, but there is no way of proving that the value judgments of any individual or group are better for society than those of others.
The doctrine of permitting each company to select
b. ‘Neutrality is about freedom from bias. Prudence is a bias. It is not possible to embrace both conventions in one coherent framework.’ Discuss
c. List five benefits of a conceptual framework
2. Please list and explain THREE accounting principles
3. The role of the accounting profession in framework development and standard setting
4. Please discuss the theories of regulation : Public Interest Theory, Private Interest Theory and Regulatory Capture Theory
5. What is positive accounting theory? How does it differ from normative accounting theory? What were the dissatisfactions with normative accounting theory which led to the development of a positive accounting theory?
6. Discuss agency costs under Positive Accounting Theory.
7. Under the EMH ( Efficient Market Hypothesis ), what are the levels of market efficiency ? Explain each level
8. Discuss the hypotheses under the choice of accounting methods by a firm.
9. What is income smoothing and window dressing? How does the accounting profession attempt to deal with this problem?
10. Describe the concept of profit under the financial capital and the physical capital views of capital maintenance.
11. Explain the concept of capital maintenance. Is adjusting for changes in the value of monetary and non-monetary assets consistent with the capital maintenance concept?
a. Explain the purpose of a conceptual framework
As a defense against political interference in the neutrality of accounting reports. Accounting policies can only be implemented by making a value judgment, but there is no way of proving that the value judgments of any individual or group are better for society than those of others.
The doctrine of permitting each company to select
b. ‘Neutrality is about freedom from bias. Prudence is a bias. It is not possible to embrace both conventions in one coherent framework.’ Discuss
c. List five benefits of a conceptual framework
2. Please list and explain THREE accounting principles
3. The role of the accounting profession in framework development and standard setting
4. Please discuss the theories of regulation : Public Interest Theory, Private Interest Theory and Regulatory Capture Theory
5. What is positive accounting theory? How does it differ from normative accounting theory? What were the dissatisfactions with normative accounting theory which led to the development of a positive accounting theory?
6. Discuss agency costs under Positive Accounting Theory.
7. Under the EMH ( Efficient Market Hypothesis ), what are the levels of market efficiency ? Explain each level
8. Discuss the hypotheses under the choice of accounting methods by a firm.
9. What is income smoothing and window dressing? How does the accounting profession attempt to deal with this problem?
10. Describe the concept of profit under the financial capital and the physical capital views of capital maintenance.
11. Explain the concept of capital maintenance. Is adjusting for changes in the value of monetary and non-monetary assets consistent with the capital maintenance concept?