earnings quality since net income does not representatively portray the economic performance of the business entity for the period. Income smoothing relies not on falsehoods and distortions but on the wide leeway existing in alternatively accepted accounting principles and their interpretations. It is conducted within the structure of gaap. In effect‚ it redistributes income statement credits and charges among periods. The prime objective is to moderate income variability over the years by shifting
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Chapter 3 – Problem 18 a) Let the probability of state 1 (the high performance state) be P(H) = 0.5 Let the probability of state 2 (the low performance state) be P(L) = 0.5 We assume that the amount of utility or satisfaction Ajay derives from a payoff is equal to the square root of the amount of the payoff. So‚ we get Ui(a) = √x‚ x≥0 Where x is the amount of the payoff The decision theory tells us that the act with the highest expected utility should be chosen. We denote
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UNIT 1 – FUNDAMENTAL PROBLEMS OF ECONOMIC SYSTEMS 1.1 INTRODUCTION In this unit you will get acquainted with the fundamental problems of the economy. The understanding of the concept will help you bring closer to the basic idea of the economy’s problems as well as remedies of such problems. In this unit you will get detailed description of what is an economic system‚ problems of economic system‚ factors of production‚ concept of production possibility curve‚ and the fundamental of allocation of resources
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IN THE SESSIONS COURT OF KUALA LUMPUR CASE NO. 62A-160-2007‚ 62A-159-2007‚ 62A-208-2007 & 62A-209-2007 PUBLIC PROSECUTOR V 1. TAN SIOK WAN 2. LEE SIN TECK 3. LIM KIM MING 4. LIM KIM HAI WRITTEN SUBMISSIONS OF THE PROSECUTION AT THE END OF PROSECUTION CASE May it please Your Honour‚ The Prosecution submits that it has respectively proven its case beyond reasonable doubt on the following charges and therefore prays that the defence be called on all the charges
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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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Question 3: Paragraph 81 states that if the amount of consideration to which an entity will be entitled is variable‚ the cumulative amount of revenue the entity recognizes to date should not exceed the amount to which the entity is reasonably assured to be entitled. An entity is reasonably assured to be entitled to the amount allocated to satisfied performance obligations only if the entity has experience with similar performance obligations and that experience is predictive of the amount of consideration
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Study Material INTEGRATED PROFESSIONAL COMPETENCE COURSE Cost Accounting and Financial Management Part 1 : Cost Accounting Vol. I The Institute of Chartered Accountants of India (Set up by an Act of Parliament) New Delhi PAPER 3 COST ACCOUNTING AND FINANCIAL MANAGEMENT Part – 1 : Cost Accounting VOLUME – I BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA This study material has been prepared by the faculty of the Board of Studies. The objective of the
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Attribution Theory is used by social psychologist to observe how people go about attributing causes to behaviours. According to Fritz Heider well known attribution theorist these may be internal or external factors. Internal factor include internal causes such as the person being clumsy or lazy. External factors refer to the outcome being caused by environmental factors (Morris & Maisto‚ 2013). While theorist Harold Kelly conclude that humans rely on three sets of information in order to arrive
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Compare and contrast normative and positive accounting approaches: Definition of PAT: Watts and Zimmerman (1986) defined Pat as a theory that seeks to explain and predicts particular phenomenon. It is concerned with explaining accounting practice. The three basic hypotheses as outlined by Watts and Zimmerman (1978) underlying PAT are: 1. Bonus plan hypothesis: The bonus plan hypothesis is that managers of firms with bonus plans are more likely to use accounting methods that increase current period reported
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DEVELOPMENT OF ACCOUNTING THEORY IN MALAYSIA LECTURER: DR. ROSMILA SENIK GROUP MEMBERS: AHMAD SABRI IZZAT BIN RAMLI 134918 ROSMALINDA BT ISMAIL 135047 MOHD SHUKRY BIN MD TAIB 134820 ILY IRYANI ISTIHAR 135272 Introduction Studies of accounting development in Malaysia more focus on the politics of
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