Accounting Theory Cga
Slide 1
ACCOUNTING THEORY & CONTEMORARY ISSUES (AT1)
MODULE ONE
Slide 2
ACCOUNTING UNDER IDEAL CONDITIONS
Part 1 - Foundation items re the course
Part 2 - Present value accounting under certainty
Part 3 - Present value accounting under uncertainty Part 4 - Reserve recognition accounting
Part 5 - Examination question examples
Part 6 - Historical cost accounting
Lecture by:
Dr. A. L. Dartnell, FCGA
Year 2009 - 2010
2
Slide 3
PART 1
Foundation Items re the Course
Different Course
Financial reporting is extremely important in our everyday life. You have heard of the many irregularities that have occurred in recent years which primarily involved financial reporting.
Financial reporting is controlled by standards set so that the best disclosure will take place. To fully understand the importance and necessity for these standards, you need to appreciate that they are designed so as to trade off the conflicting interests of constituencies affected by them — usually investors and managers.
Note carefully that Standard Setting bodies make these trade-offs through due process.
That is, standards are set in consultation with major constituencies. Devices to achieve due process include representation of major constituencies on the standard setting boards, supermajority voting, exposure drafts, and public meetings. In other words, the issues and topics are well-vetted prior to their implementation.
Thus the course deals with standard setting of accounting policies by which you are guided in your work as an accountant.
Slide 4
Second, students often ask why they need an accounting theory course. We need to understand the thinking and action underlying the requirements for the standards we follow. All activities in life have a theoretical background. For example, how a chef prepares a meal in a restaurant. If the theory behind the meal is good, customers return. If not, they dine elsewhere.
How you cut the lawn has a theory.
You follow a
ACCOUNTING THEORY & CONTEMORARY ISSUES (AT1)
MODULE ONE
Slide 2
ACCOUNTING UNDER IDEAL CONDITIONS
Part 1 - Foundation items re the course
Part 2 - Present value accounting under certainty
Part 3 - Present value accounting under uncertainty Part 4 - Reserve recognition accounting
Part 5 - Examination question examples
Part 6 - Historical cost accounting
Lecture by:
Dr. A. L. Dartnell, FCGA
Year 2009 - 2010
2
Slide 3
PART 1
Foundation Items re the Course
Different Course
Financial reporting is extremely important in our everyday life. You have heard of the many irregularities that have occurred in recent years which primarily involved financial reporting.
Financial reporting is controlled by standards set so that the best disclosure will take place. To fully understand the importance and necessity for these standards, you need to appreciate that they are designed so as to trade off the conflicting interests of constituencies affected by them — usually investors and managers.
Note carefully that Standard Setting bodies make these trade-offs through due process.
That is, standards are set in consultation with major constituencies. Devices to achieve due process include representation of major constituencies on the standard setting boards, supermajority voting, exposure drafts, and public meetings. In other words, the issues and topics are well-vetted prior to their implementation.
Thus the course deals with standard setting of accounting policies by which you are guided in your work as an accountant.
Slide 4
Second, students often ask why they need an accounting theory course. We need to understand the thinking and action underlying the requirements for the standards we follow. All activities in life have a theoretical background. For example, how a chef prepares a meal in a restaurant. If the theory behind the meal is good, customers return. If not, they dine elsewhere.
How you cut the lawn has a theory.
You follow a