with planning) TOPIC: Discuss positive accounting theory and contrast it with normative accounting theory. Provide examples where appropriate. The purpose of this essay is to provide an overview of positive accounting theory (PAT) and highlight how this theory differs to normative accounting theory. Definitions and assumptions of both theories will be considered and examples of the theories will be provided. In addition specific theories related to PAT namely agency and the efficient
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view the knowledge we learnt from accounting theory and practice‚ the main thing I can conclude that is the tendency of accounting will shift away from technical way to people’s behaviour way. By understanding what should do‚ we should ask why and how we could improve and change it into a better way. This essay aims to explain how the theoretical material that we learn in lectures can be developed under a real practical manner. When talking about accounting‚ the first thing we should know is
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Solutions Manual to accompany Accounting Theory 7e BY Allan Hodgson‚ Victoria Wise John Wiley & Sons Australia‚ Ltd 2010 Chapter 11: A positive theory of accounting policy and disclosure THEORY IN ACTION Theory in Action 11.1 Objections to crackdown 1. What are the likely components of a chief executive officer’s (CEO) management compensation package that might be affected by the proposed changes? It is most likely that the cash component of CEO compensation packages would
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Question 1 Critically evaluate the need for accounting standards and the need for a set of principles on which they are based. Accounting Standards Accounting standards contain a set of rules and governing practices for the treatment of all financial transactions. The main objective of accounting standards is to establish recognition‚ measurement‚ presentation and disclosure requirements dealing with financial transactions and key events which are important in the financial statements of companies
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-2 Lecture: In this lecture I had the understanding‚ why accounting bodies are so heavily regulated by the government. After the corporate collapse‚ accounting body lost the trust of public. Our work was not transparent and therefore‚ was no longer reliable. Regulator body such as ASIC‚ AASB‚ FRC and ASX are formed after the corporate collapse. ASIC is the corporate ‘watch dog’ who monitors FRC‚ AASB and office of AASB. Why we need regulation? Because it is human nature to find loop-hole to
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Not-for-profit organizations also provide financial information to external users such as citizen groups and donors. As an individual‚ you provide financial information to the internal revenue service and to creditors when you seek a loan. 2. Accounting is often thought of as the “language” used to communicate financial information about a business. The primary method that profit-oriented companies use to provide financial information to investors‚ creditors‚ and other external parties is through
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function? • How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method? • Pendergrass Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain. • What are the basic issues related to accounting for intangible assets? • Why would you select the percentage of sales method for calculating doubtful accounts instead of the percentage of receivables method
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of Needs Theory Abraham Maslow’s Hierarchy of Needs is one of the first theories of motivation and probably the best-known one. It was first presented in 1943. in Dr. Abraham Maslow’s article "A Theory of Human Motivation" in Psychological Review‚ and was further expanded in his book “Toward a Psychology of Being”. Maslow tried to formulate a needs-based framework of human motivation. His research was based upon his clinical experiences with humans‚ rather than prior psychology theories from
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B) Four motivational theories that could explain why production has dropped at Engstrom after 2005 are Maslow’s Hierarchy of Needs‚ Herzberg’s Motivation-Hygiene theory‚ McClelland’s Need theory‚ and Expectancy theory. Maslow’s Hierarchy of Needs is probably the most basic motivational theory which can highlight why people may or may not feel satisfaction in a situation including a workplace. After layoffs were happening‚ cutbacks‚ ration changes and so on‚ people started to feel unsafe in their
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Indeed‚ every student must be given the opportunity and the chance to be not just schooled but educated regardless of their social status and academic competency. As the mantra goes‚ “Education is a right and not a privilege”. The movie titled “Accepted” vividly shows how vital the role of education is in the lives of every individual. Its essentiality gives a tremendous impact to one’s existence as it helps everyone become a complete being. Education as I firmly believe is the key tool towards
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