TACC406 Accounting Theory 会计理论 assignment代写

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  • TACC406 Accounting Theory 会计理论 assignment代写

    TACC406 Group assignment information
    Value: 30% of overall assessment
    (20% for the written work and 10% for the presentation)
    Due date: The written work due in Week 9
    The presentation due in week 10
    (please see details below)
    Word limit: 2500 words

    TACC406 Accounting Theory 会计理论 assignment代写
    CHAPTER 1 
    Overview of Accounting Theory
    What is a theory?
    Hendriksen’s definition:
     …the coherent set of hypothetical, conceptual and pragmatic principles forming the general framework of reference for a field of inquiry.

    Overview of Accounting Theory
    What is an accounting theory?
    Hendriksen’s definition:
    …logical reasoning in the form of a set of broad principles that 
    provide a general framework of reference by which accounting practice can be evaluated and  
    guide the development of new practices and procedures.
    Overview of Accounting Theory
    Whether a theory is accepted depends on how:
    well it explains and predicts reality
    well it is constructed both theoretically and empirically
    acceptable its implications are

      Overview of Accounting Theory
    Accounting theory is a modern concept compared to mathematics or physics
    Even Pacioli’s treatise on double-entry accounting focused on documenting practice and did not explain the underlying theoretical basis for it
     Overview of Accounting Theory
    The development of accounting
    theory has been mostly unstructured

      Accounting has frequently been described as a body of practices which have been developed in response to practical needs rather than by deliberate and systematic thinking. 

    Overview of Accounting Theory
    Was developed to resolve problems as they arose – reactive
    Ad hoc approach
    Led to inconsistencies in practice
    e.g. different depreciation methods
    Accounting standard setting
    Conceptual framework projects have not resolved inconsistency in practice
       Pre-theory (1400s – 1800)

      No theory of accounting was devised from the time of Pacioli down to the opening of the nineteenth century.
     Pragmatic accounting (1800– 1955)
    The ‘general scientific period’
    based on empirical observation of practice
    provided an explanation of accounting practice
    focused on the existing ‘viewpoint’ of accounting

     Normative accounting (1956-1970)
    Sought to establish ‘norms’ for the best accounting practice
    Focused on what should be (the ideal) v. what is

    Normative accounting (1956-1970)
    Degenerated into battles between competing viewpoints
    Two groups dominated:
    conceptual framework proponents
    critics of historical cost
    Normative accounting (1956-1970)
    Factors prompting the demise of the normative period include:
    the unlikelihood of one particular normative theory being generally accepted
    the application of financial economic principles
    the availability of empirical data and new testing methods
    Normative accounting (1956-1970)
    The major criticisms of normative theories were:
    they do not necessarily involve empirical hypothesis testing
    they are based on value judgements
    Positive accounting (1950 to the present day)
    A shift to a new form of empiricism called ‘positive theory’
    Had its origins in the ‘general scientific period’
    It seeks to explain the accounting practices being observed

    Positive accounting (1950 to the present day)
    Its objective is to explain and predict accounting practice
      e.g. the bonus plan hypothesis

    Positive accounting (1950 to the present day)
    It helps predict the reactions of ‘players’, such as shareholders, to the actions of managers and to reported accounting information

    Positive accounting (1950 to the present day)
    Major deficiencies are:
    ‘wealth maximisation’ has become the answer to explain all accounting practices and reported information
    it relies excessively on agency theory and dubious assumptions about the efficiency of markets
    Positive accounting (1950 to the present day)
    Behavioural research:
      concerned with the sociological implications of accounting numbers and the associated actions of ‘key players’

    emerged in the 1950s

    despite growing acceptance since the 1980s, positive accounting theory still dominates

       Recent developments
    Academic and professional developments in accounting theory have tended to take different approaches
    Academic research focuses on capital markets, agency theory and behavioural aspects
    The profession has sought a more normative approach – what accounting practices should be adopted
       Recent developments
       Recent developments
    Conceptual framework – resurrected in 1980s
    states the nature and purpose of financial reporting
    Establishes criteria for deciding between alternative accounting practices
    SACs 1–4
      Recent developments
    Conceptual framework – Recent Developments
    Joint project between IASB & FASB
    International harmonisation of accounting practices through a single consistent set of international financial reporting standards (IFRS)

     Recent developments
    The conceptual framework underpinning the IFRS favours a move toward
    accounting practices that provide information for enhancing decision making by investors and others
    recognising all gains and losses in the accounting periods in which they occur
    measurement using exit values

       Content outline
    Part 1: Accounting theory (chapters 1 – 3)
    Part 2: Theory contributing to practice (chapters 4 – 10)
    Part 3: Accounting and research (chapters 11 – 14)
    Accounting theory
    Major periods of accounting theory development
    Normative accounting
    Positive accounting
    Conceptual framework

       Key terms and concepts
    Accounting theory
    Normative theory
    Positive theory
    Behavioural theory
    Conceptual framework

    • Students are to form groups of 5, each student’s name must be recorded on the coversheet
    otherwise that student will receive zero for the assignment.
    • Students must submit the group assignment online (by 5 pm on Friday 05 May 2017 for
    online submission) and a hard copy to your lecturer during class time (on Tuesday 2 May
    2017 for stream2 and on Friday 05 May 2017 for Stream 1). Late penalty at 10% per day.
    • The assignment must be word-processed, single-spaced, and printed on one side only of A4
    paper. The word size should be 12 with ‘Times new roman’ font type.
    • Harvard referencing is to be used.
    • Only the group leader should submit online.
    • The group presentation will be held during class time in week 10. Students will present as
    a group, and marks for the presentation will be awarded individually.
    • Duration for presentation: 2-3 minutes for each student and maximum 15 minutes for a
    • All group members must attend and present, otherwise you will lose the 10% of
    presentation mark
    IASB has issued International Financial Reporting Standards (IFRS) that are being adopted
    by nations all over the world. Carefully read the article below:
    Ball, R. (2006), “international financial reporting standards (IFRS); pros and cons for
    investors”, Accounting and Business Research, International Accounting Policy Forum, pp.
    Critically discuss any issue raised in the article. (2500 words)
    The objective of the assignment is to develop your critical thinking, technical research and
    written communication skills. You need to investigate and analyse accounting literature and
    recent developments on IFRS adoption. You are required to use extensive references to
    support your discussion.
    TACC406 Accounting Theory 会计理论 assignment代写