3101AFE Seminar Questions from Seminars 1 6 Sem 1 2015
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3101AFE Accounting Theory and Practice
Seminar Questions for Seminars 1- 6: Semester 1 2015
SEMINAR 1 - Semester 1 2015
Deegan Topic 1: Introduction to financial accounting theory
QUESTION 1 – Question 1.2:
If you developed a theory to explain how a person’s cultural background influences how they prepare financial statements, would you have developed a positive theory or a normative theory?
QUESTION 2 - Question 1.3:
What is a conceptual framework, and would it be considered to be a positive or a normative theory of accounting?
QUESTION 3 – Question 1.27 (NEW):
The International Accounting Standards Board has a number of roles, including formulating accounting standards and developing a conceptual framework. Is the work they do…show more content… QUESTION 2 - Question 4.19:
It is often argued that the accounting standards of the FASB are rule-based, whereas the accounting standards issued by the IASB are principles-based. Rules-based standards by their nature can be quite complex, particularly if they seek to cover as many situations as possible. Do you think it would be easier to circumvent the requirements of rules-based or principles-based accounting standards?
QUESTION 3 - Question 4.22:
Does the standardisation of accounting standards on a global basis necessarily equate with a standardisation in accounting practice?
QUESTION 4 – Question 4.30 (NEW)
In continental European countries, prior to the adoption of IFRS, the domestic accounting rules were typically much more aligned with local taxation regulation than would be the case in countries like the United States, the United Kingdom, Canada, Australia or New Zealand. Why do you think this could have been the case?
QUESTION 6 - Topic 5: Question 6.7:
Conceptual framework projects identify a number of qualitative criteria that financial information should possess if it is to be useful for economic decision making. Two such attributes are neutrality and representational faithfulness? Do you believe that financial information can, in reality be neutral and representationally faithful? Explain your answer.