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accounting theory
3101AFE Accounting Theory and Practice
Tutorial Questions for Tutorials 1- 6: Semester 2 2014
TUTORIAL 1 - Semester 2 2014

Deegan Topic 1: Introduction to financial accounting theory

QUESTION 1 - Question 1.8:
What is the difference between developing a theory by induction and developing a theory by deduction?

QUESTION 2 - Question 1.9:
Is the study of financial accounting theory a waste of time for accounting students? Explain your answer.

QUESTION 3 - Question 1.26:
Would you reject as ‘insignificant and useless’ a positive theory of accounting on the basis that in a particular research study the results derived failed to support the hypotheses and the related theory? Explain your answer.

QUESTION 4 – Question 1.27 (NEW):
The International Accounting Standards Board has a number of roles, including formulating accounting standards and developing a conceptual framework. Is the work they do in developing an accounting standard or the conceptual framework normative or positive in nature?

QUESTION 5 - Question 1.33 (NEW):
In this chapter we provided quotes from Gray, Owen and Adams (2010), in which they discuss an apparent herding phenomenon that seems to be occurring in respect of the selection and use of particular theories. They state, ‘there has been a strange herding tendency, especially around legitimacy theory’, as well as stating that they ‘also have a sneaking feeling that institutional theory may be coming up fast as the next theory around which to herd’.

What do they mean by this apparent practice of ‘herding’, and what are some possible advantages and disadvantages that are related to this practice?

QUESTION 6 – Question 1.35 (NEW):
Do we really need financial accounting theory if all we are interested in doing is developing accounting standards?

TUTORIAL 2 - Semester 2 2014

Deegan Topics 2 and 3:
The financial reporting environment and Regulation of financial accounting

QUESTION 1 - Question 2.3:
Do you
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