Theory Accounting Case 8.1 Simon Romario (023121023) Purwanto Gozali (02312132) Endah Puspitasari (023121065) 1. The article states that the US standard setter FASB requires companies to record a provision in relation to environmental cost of retiring assets (to reserve environmental liabilities) if its fair value could be reasonably estimated. How do you think companies would go about estimating such a provision? Estimation (or estimating) is the process of finding an estimate
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SELF-INTEREST‚ ALTRUISM‚ INCENTIVES‚ & AGENCY THEORY Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract Many scholars‚ business people‚ policy makers‚ and religious leaders are suspicious of self-interest and incentives and often oppose the use of incentives to motivate managers‚ employees‚ public servants‚ or the public itself. I address here some of these issues regarding human nature and organizations raised by Michael Brennan (1994) in “Incentives‚ Rationality‚ and Society
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Referencing Exercise Due to implications for related research in areas of accounting and finance‚ Time series behaviour of earnings is crucial for empirical studies (Beaver 1970). Issues regarding Income smoothing‚ the relative forecast ability of alternative income measurements‚ and interim reporting‚ were discussed by Beaver (1970: pp. 62). These studies share mutual reliance upon a knowledge of the process creating accounting earnings‚ despite representing a comprehensive spectrum of predictive
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Faculty of Commerce Faculty of Commerce - Accounting & Finance Working Papers University of Wollongong Year Accounting Theory and Practice: the Ethical Dimension M. Gaffikin University of Wollongong‚ michael gaffikin@uow.edu.au This working paper was originally published as Gaffikin‚ M‚ Accounting theory and practice: the ethical dimension‚ Accounting Finance Working Paper 07/04‚ School of Accounting Finance‚ University of Wollongong‚ 2007. This paper is posted at Research Online. http://ro
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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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reached about what perspective theories should be used to explain the Social and Environmental Accounting‚ and moreover critique voices are from the works of Marx or by the deep-green or feminist literatures (Deegan‚ 2002)‚ to some extent‚ systems-oriented theory and Positive Accounting Theory can list some hints. This essay will seek to explain the reasons why firms voluntary disclosure information by referring to Legitimacy theory‚ Stakeholder theory‚ institutional theory‚ and lastly Political Costs
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from Irving Fisher’s The Theory of Interest‚ 1930 Preface -- It was the misunderstanding of my theory of interest put forward in my 1907 book the Rate of Interest that led me to adopt the catchword “investment opportunity” as a substitute for the inadequate term “productivity” which had come into general use. This combined with my early “impatience theory” led to the impatience and opportunity theory which can be said to be distinct from all other theories of interest because it explicitly analyzes
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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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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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PRIVATE SECTOR VS PUBLIC SECTOR ACCOUNTING STANDARD 1. INTRODUCTION The global financial crisis has demonstrated that the public sector as well as the private sector needs the highest quality accounting standards. Around the world‚ accounting in the public sector is practiced in diverse ways and struggles to achieve comparable standard in accountability and transparency. The Securities Act of 1933 gave the commission the authority to prescribe accounting standards to be followed by the companies
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