ADM 4342 Seminar in Accounting Theory Turn OFF all cellphones! Once class commences‚ Computers should only be used for class work! You have a responsibility to make the classroom environment respectful and conducive to learning. Course Outline Introduction to Accounting Theory What does Accounting “Theory” mean? Defining “Theory” (Webster’s New Collegiate Dictionary) 1. A plausible or scientifically acceptable general principle or body of principles offered to
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QUESTION 1 a. Outline the objective and the principles of a theory that prescribes fair value accounting. Fair value accounting is to measure selected assets at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The objective of fair value accounting is linked with the objective of ‘decision usefulness’ of general purpose financial reporting. That is‚ to provide relevant information that
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POSITIVE ACCOUNTING THEORY‚ POLITICAL COSTS AND SOCIAL DISCLOSURE ANALYSES: A CRITICAL LOOK* Markus J. Milne Accountancy and Business Law University of Otago Dunedin New Zealand Ph: 64-3-479-8120 Fax: 64-3-479-8450 Email: mmilne@commerce.otago.ac.nz * The author would like to thank Alan MacGregor‚ Carolyn Stringer‚ Gregory Liyanararchchi‚ Ros Whiting and an anonymous conference reviewer for their helpful comments on earlier drafts of this paper. Thanks are also due to seminar participants
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Standards (IFRS) are a set of accounting standards that can be used to bring about one set financial reporting in the world basis. The necessary of international accounting standards arises from the increasing globalization of business and the growth of capital markets in the world. Therefore‚ there is a large demand for accounting information which can be comparable across companies in different countries. The IFRS is issued by the International Accounting Board Committee and is constantly
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BKAF 3083 ACCOUNTING THEORY AND PRACTICE Individual Assignment 1 1. Explain 8 levels of conceptual framework Level | Elements | Explanation | 1.Border of discipline / authority | * Definition of financial reporting | It defines the financial record of the business activities. | 2. Subject | * Definition of the reporting entity | It defines the reporting entities where the users are dependent on their financial statements to make decision. | 3. Objective | * Objective | It is
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between Biovail and the Distributer provided that title to‚ and risk of loss with respect to‚ the product would not have passed to the Distributer until the product was delivered to the Distributer’s facility. In this scenario‚ using generally accepted accounting principles (GAAP) requirements‚ revenue cannot be recognized as the seller has not done everything required under the sales agreement. In this specific sales agreement‚ title and risk of the shipment remains the seller’s until received by the
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STATEMENTS d 3. Pro forma financial statements are: a. statements recapping the performance of a firm for the past five years. b. accounting statements filed with the Securities and Exchange Commission. c. accounting statements filed with the Internal Revenue Service. d. projected accounting statements based on a sales forecast. e. the most-recently compiled accounting statements of a firm. PLUG VARIABLE e 4. The designated source of external financing required to make a pro forma balance sheet
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Summary 1 Introduction 2 Theories of Accounting 2 Public Interest Theory 2 Private Interest Theory 2 Regulatory Capture Theory 3 Is accounting Needed (GPFR)? 3 What does the financial department (accounts) do? 3 Why public disclosure became so serious? 4 Principal Agent Outlook 4 Agency Cost- Critical Reason for accounting frauds 6 Three Essential Accounting Areas 7 Capital Budgeting 7 Investments 9 Capital Structure 11 Trade off theory 12 Conclusion 13 References:
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1121 theory Topic 1 BDA/inventory * Time period assumptions: firm would find it desirable to report their financial statements more frequently therefore the economic life could be divided into artificial time periods. * Why are adjusting entries required? The purpose of balance day adjustment is to recognise revenue and expenses in the relevant Period. * Compare and contrast the purposes of adjusting entries‚ closing entries and reversing entries The purpose of closing entry is
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Module 1: Accounting under ideal conditions Ideal conditions; certainty and uncertainty (including differences & similarities)‚ dividend irrelevancy‚ arbitrage‚ accretion of discount‚ abnormal earnings RRA - SFAS69; weaknesses of RRA (relevant but not as reliable) Historical Accounting Revisited mixed measurement model‚ (relatively reliable but lacks relevance)‚ revenue recognition‚ recognition lag Relevance VS Reliability -> tradeoffs (Without ideal conditions‚ complete relevance &
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