Topic 2 - Week 3
1. There are two traditional approaches to theory construction that provide an insight on how theories are constructed. These are the inductive approach and deductive approach.
a) Outline the steps involved in the above two approaches
b) State the difference between the two approaches.
2. “The modern rational organisation of capitalistic enterprise would not have been possible without two other important factors in its development: the separation of business from the household….and, closely connected with it, rational bookkeeping” (Max Weber on Capitalism, Bureaucracy and Religion).
Based on above quotation, provide arguments for and against accounting flourished capitalism. Then discuss the role of double-entry in the economic expansion.
Topic 2 – Week 4
1. Accounting theory may be defined as logical reasoning in the form of a set of broad principles that (1) provide a genera frame of reference by which accounting practice can be evaluated, and (2) guide the development of new practice and procedures.
a) State the three (3) purposes of Accounting Theory that can be derived from the above definition.
b) Briefly explain the relationship between accounting theory, accounting policy and accounting practice.
2. Evaluate three approaches stated below to theory construction that provide insight on how accounting theories are constructed. a) Ethical approach
b) Sociological approach
c) Economic approach
Topic 3- Week 5
1. In view of the international efforts towards globalization and harmonization of international accounting practices, Malaysia develops its framework in cognizant in material aspects of the international framework. Malaysian Accounting Standard Board (MASB) is responsible to develop a conceptual framework for Malaysia.
a) Explain why Malaysia, through MASB needs to develop its own framework?
b) State four (4) purposes of establishing conceptual framework
c) What are the essential components of a conceptual framework?
d) Discuss 2 types of difficulties that would be faced by a developing country like Malaysia, in developing its own conceptual framework.
Topic 3 – Week 6
1. Briefly explain the following elements contained in the structure of conceptual theories in accounting. a) Objectives of financial statements
b) Accounting Postulates
c) Accounting theoretical concepts
d) Accounting principles
e) Accounting techniques
2. In your opinion, does the accounting profession need accounting standards? Support your answer by explaining the advantages of having accounting standards.
3. Despite its importance, the existence of accounting standards may cause some problems to the profession. Discuss the shortfalls of using accounting standards.
Topic 4 –Week 7
1. Provide arguments for and against public sector regulation of accounting standards.
2. What are the challenges facing MASB in this globalized environment?
3. How do you see the role of MASB and how it can in be enhanced in the future?
Topic 4- Week 8
1. Discuss the three theories of regulation under accounting. 2. Discuss the difference between free and regulated market in the context of accounting regulations.
3. Who are the key players in the accounting regulatory process and what is their role in protecting public interest and enhancing investor confidence?
Topic 5 –Week 9
1. What is Agency Theory? Outline the core assumptions. Are people rational but greedy?
2. Under Positive Accounting Theory, discuss the perspectives on the choice of accounting methods by an organization.
3. Explain agency relationship under Positive Accounting Theory
Topic 5 – Week 10
1. Briefly introduced the differences between positive accounting theory and normative accounting theory.
2. What are the advantages of positive of accounting theory in the development of paradigms in accounting...
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