Service Quality at UDSM Business School

Service Quality at Univrsity of Dar Es Salaam Business...
CHAPTER ONE
Introduction
1. Background of the Organisation.
University of Dar es Salaam Business School (UDBS) is located at the University of Dar es Salaam
(UDSM) main campus, about 13 km from the City Centre. UDBS came into existence in 2008 as a
result of the transformation of the then Faculty of Commerce and Management (FCM) which was
established in 1979. Measured by the strength of its staff in teaching, research and consultancy; plus
the breadth and quality of undergraduate and postgraduate programmes and extensive training and
consultancy programs in business, entrepreneurship and management.
UDBS is one of the leading institutions in business and management research, teaching and
consultancy in the Sub–Saharan ... Show more content on Helpwriting.net ...
Rust et al(1996) also defines service as any act or performance that one part can offer to another that
is essentially intangible and does not result in the ownership of anything, Gronroos(1990) defines
service as an activity or series of activity of more or less intangible nature that normally, but not
necessary, take place in interaction between customers and service employees and/or physical
resources or goods and/or system of service provider, which are provided as solutions to customer
problems.
Characteristics of services
Services possess some unique characteristics which differentiate them from goods or physical
products. These peculiar characteristics pose challenges in their delivery and meeting customers'
expectation. Services are characterized by intangibility, inseparability, heterogeneity or variability,
lack of ownership and perishability. Due to this characteristics Kotler (1984) suggested that
measuring service quality is subjective and for this reason marketers strive to put tangible cues as
one of the way to address the challenges of delivering the service and to meet expectation of
targeted customers.
Service quality; Service quality as a subjective phenomenon of service is defined differently by
different scholars;

Manfred et al(2006) defines service quality in terms of customers expectation and perception of
service provided. Zeithaml(1998) considers service quality
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Accounting Practices For The Market Valuation
INTRODUCTION: In current scenario, many corporate firms have some issues due to change in
accounting practices for the market valuation. Change in financial management for market valuation
has been failed and brings the notion of three different entities; accountability, representation and
control. So, in this essay I have taken "AMAZON" company and yet to discuss about their
accounting practice which influence the market valuation. In addition, issues of accountability,
representation and control also to be discussed briefly in accordance with their accounting practice.
ACCOUNTING: The process of observing and providing the financial statistics of an organisation
which is useful for customers for managing and to create economic decisions. "The process of
identifying, measuring and communicating financial information about an entity to permit informed
judgements and decisions by users of information." (McLaney and Atrill, 2002:1). Accounting data
is unbiased and neutral, which helps to determine the level of excellence and different factors that
influence the company's performance. This point has been explained clearer by (Ezzamel &
Willmott, 2004:784) " Accounting information is an impartial and neutral representation data, which
is correctly used, can reduce unwanted ambiguities and can reduce waste in organizing supplies".
The three main financial statements are the balance sheets, the profit or loss account and the cash
flow statement. Hence, with these types of

Public And Private Sector Accounting
Introduction
The major debate in accounting is about the appropriateness of adopting the private–sector
accounting standards and practices to the public sector. Some researches support there is no
distinction between the public and the private sector. For example, McGregor (1999) thought these
two sectors are primarily similar in physical characteristics of assets. However, the against side
believes that in some public activities, the application of accounting standards for public sector
entities is inconsistent with the business sectors (Guthrie, 1998; Barton, 1999).
This report concerns on evaluating three major issues between public and private sectors
accounting: 1) a sector–neutral approach chosen by accounting regulators; 2) the impact of applying
a sector–neutral approach to public–sector accounting; 3) the adequate information generated by
current approach meet the different information needs of users from public and private sectors.
After the Introduction, I will analysis these three issues by providing critiques and literature reviews
on different opinions in following section and give a conclusion.
Literature review and Evaluation
The public sector is one of the most important sectors of any countries. The public sector entities
offer services, goods or programs to public for non–profit purpose. However, the private sector is
mainly composed by for–profit entities. In this report, I will regard the public sector entities as
government or government–controlled

Decision Usefulness Approach
| Decision Usefulness Approach | Can the decision usefulness approach make financial reporting
more useful? | | | |
|
Prepared by Jing Wang
Abstract
This paper explores the question whether the financial statements can be made more useful. This
leads to an important concept in accounting–– the concept of decision usefulness. To properly
understand this concept, this paper outlines other theories from economics and finance to assist in
conceptualizing the meaning of useful financial statement information.
The main purpose of this paper is to introduce the concept of decision usefulness approach, related
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Therefore, in order to adopt the decision usefulness approach, three major questions must be
addressed:
1. Who are the users of financial statements?
It is helpful to categorize users into broad groups, such as investors, creditors, managers, unions,
standard setters, and governments, etc. These groups are called constituencies of accounting.
* Investors * Holders of equity securities, such as common stocks, preferred shares * Holders of
partnership interest * Other equity holders or owners
* Creditors * Purchaser of debt instrument * Lend economic resources
* Manager * Inside financial statements provider and user * Has a different incentive of using
financial statements than outsiders'
* Other users (provide resources) * Employees – provide human capital in exchange for salary,
remuneration and pension. * Suppliers – extend credit to facilitate sales. * Customers – prepay for
goods and services. * Union, standard setters and governments–provide policies and regulations.

In order to take a close look into various financial statement users' behaviour, two theories or
concepts should be outlined here:
* Single–person decision theory
Single–person decision theory takes the viewpoint of an individual who much make a decision
under conditions of uncertainty. * It suggests how a rational individual makes optimal decisions in
the presence of uncertainty. * It

Bias in Financial Reports
Bias in Financial Reports This essay examines sources of bias in financial reports and therefore
considers a range of principles and theories. Users of financial statements need the information
contained in financial reports to be free from bias. Users would prefer that financial statements
present a balanced view of a company's affairs, one that attempts to convey information as neutrally
as possible. This preference occurs because more information equates to less uncertainty. The more
information is available, and the better the quality of that information, the better the capital market is
able to allocate resources efficiently. Less uncertainty results in less risk and in lower risk premiums
(Foster, n.d.). This requirement for neutral financial reporting is so important to investors that the
SEC maintains and enforces financial accounting standards specifically designed to achieve
neutrality. Yet, bias in financial reporting occurs, whether it is deliberately or unintentionally
introduced. Various accounting and economic theories have been introduced to explain and predict
the occurrence of biased accounting practices. Positive accounting theory (PAT) offers one such
attempt to make accurate predictions regarding real world events as captured by accounting
transactions and to explain why firms choose between various accounting techniques. PAT attempts
to explain a firm's choice of accounting methods on the basis of self–interest. PAT also provides a
framework for

The Controversy Over Equity Method
Over the years, there are many controversies over equity method within IAS 28 Investments in
Associates and Joint Ventures. The controversies basically lay on the vagueness of application on
equity method; whether it serves as one–line consolidation (consolidation technique), measurement
basis or a mixture of both. This paper divides into 3 parts. First part gives an illustration on this
accounting issue in IAS 28 as well as the explanation, second part compares and contrasts the
financial reports of two assigned entities and the final part discusses the qualitative characteristics of
their financial reports. Part 1 – Accounting Issue This issue started to arise when IASB was
developing IFRS 11 Joint Arrangements. The IASB have decided to remove the option to apply
proportionate consolidation to jointly controlled entities that existed under IAS 31 Interests in Joint
Ventures and this has widened the scope of equity method under IFRS (European Financial
Reporting Advisory Group, 2014). Since then the IASB has been doing research project on equity
method of accounting and considering various requests for guidance through narrow–scope
amendments to IAS 28. Hence, Exposure Drafts has been published. They have addressed the
diversity in practice. However, these proposed amendments are lacked of a clear conceptual basis
and they were inconsistent with each other. They found out that components of consolidation
techniques and measurement basis exist in IAS 28 and there is no

Financial Accounting Theory Essay
Chapter 1 – Financial Accounting Theory 1.1 What is Financial Accounting Theory? Henderiksen
(1970) – Theory is defined as: A coherent set of hypothetical, conceptual and pragmatic principles
forming the general framework of reference for a field of inquiry. FASB – a coherent system of
interrelated objectives and fundamentals that can lead to consistent standards. Introduction –
theories of financial accounting Accounting is a human activity and will consider such thing as
people's behavior and/or people's needs as regards financial information, or the reason why people
within organizations might select to supply particular information to particular stakeholder group.
Theories will include consideration of: ... Show more content on Helpwriting.net ...
E.g. A positive theory of accounting may yield a prediction that, if certain conditions are met, then
particular accounting practice will be observed. Positive theories can initially be developed through
some form of deductive (logical) reasoning. Their success in explaining or predicting particular
phenomena will then typically be assessed based on observation –that is, observing how the theory's
predictions corresponded with the observed facts. Positive Accounting Theory is developed by Watts
and Zimmerman, which seeks to predict and explain why managers elect to adopt particular
accounting methods in preference to others. The theory relied in great part of work undertaken in the
fields of economics, and central to the development of Positive Accounting Theory was the
acceptance of economics based 'rational economic person assumption". That is the assumption that
an accountant are primarily motivated by self–interest, and that the particular accounting method
selected will be dependent on certain conditions. Factors – FAT 1. Assumption : self–interest 2.
Premises : a. The accountant is rewarded in terms of accounting–based bonus; b. The organization
they work for is close to breaching negotiated accounting based debt covenants. However, PAT does
not seek to tell us that what is being done in practice is the most efficient or equitable process.
Chapter 1 –

Conceptual Framework For Financial Reporting Essay
Table of Contents Conceptual Framework for Financial Reporting 2 Objectives of General Purpose
Financial Reports 2 Qualitative characteristics of useful financial information 2 Disclosure
Requirements on PPE under AASB116 3 Telstra's alignment with the disclosure requirements 3
Satisfying fundamental and enhancing qualitative characteristics 4 Satisfying the objectives of a
general purpose financial report.................................... 5
Bibliography........................................................................................... 6 Conceptual Framework for
Financial Reporting Objective of General Purpose Financial Reports: The objective of a general
purpose financial report is to deliver financial information about the reporting entity. Decisions
about equity and debt instruments depend on the returns that they expect from an investment in
those instruments. To assess an entity's prospects for future net cash inflows information is needed
about several aspects of the entity including but not limiting to, resources of the entity and claims
against the entity. General purpose financial reports do not provide all the information needed for
users, thus this information needs to be gathered from other sources such as general economic
decisions. General purpose financial reports are not intended to show the value of a reporting entity.
Knowledge about the nature and amounts of a reporting entity's economic resources is used to assist
users identify strengths and weaknesses within a reporting entity. Accrual accounting is

Difference Between Rule Based Approach In Accounting
In Accounting there are mainly two approaches:
1: principle based approach or framework approach used by international Accounting standard board
(IASB)
2: Rule based approach that is used by US
Difference between rule based approach and principle based approach:
Rule based Approach
Rule based Approach in accounting having detailed lists of rules that a company must proceed while
preparing financial statements of the company. Most of the accountant prefers to use rule based
approach because in the absence of particular rule they might be carry to court if their financial
statement prudence were not correct. And they believe that a rule based Approach is better than
principle based approach because accuracy in principle based standard depends upon ... Show more
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Objective of financial reporting:
The most common user of general purpose financial reporting is present and potential investors,
lenders, and creditors. So the objective of financial reporting is to provide relevant financial
information that is useful for users in making decision about buying, selling and providing loans or
setting loans. The user needs information about resources of the company as well as also wants to
know how efficiently management of the company performs their duties to use resources of the
entity. The IFRS framework says that financial reports cannot provide all the information to users
that users may need to make decisions. They must need relevant information from other source.
Qualitative characteristics:
The qualitative characteristic of financial reporting recognize the types of information are credible
to be most important to user in making decisions about the entity on the basis of information
provided in its financial statement. The qualitative characteristic provides financial information in
financial reports as well as financial information provided in other aspects.
Fundamental qualitative characteristics:
Relevance
Faithful

The International Accounting Standards Boards
A (a)On 1 January 2005,all the stock exchange listed companies in Europe adopted the International
Financial Reporting Standards (IFRS) written by the international Accounting Standards Boards.
According to IASB, the setting body of IFRS, their primary objective is to develop a set of high
quality, transparent ,understandable, global accepted financial standards in the public interest (IFRS
2015) . Furthermore, the statement made by European Commission also explained the benefits
including the elimination of barriers to international trades, the increasing of transparency and
comparability of company accounts, the improvement of comprehensive strength and the rapid
promotion of economic growth (Commission 2002). Based on the public ... Show more content on
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(b) The prior objective of mandatory adoption of IFRS is to facilitate cross–border comparability,
increase reporting transparency and reduce information asymmetry and thereby enhance the
efficiency and competitiveness of capital market (Horton, Serafeim & Serafeim 2013). However,
applying IFRS in different countries with different enforcement mechanism can hardly achieve the
accounting harmonization, because companies are still willing to adopt their former national
regulations that reflect their requirements ,and therefore misled the users of financial report who do
not pay attention to these systematic differences by an uniformity on the surface (Deegan 2014). In
the given material, there has been various problems when EU endorse the international accounting
standards. Not only did the international accounting significantly reflect the Anglo–Saxon
accounting practice rather than continental European practice (Dewing & Russell 2008) but also,
political, business differences might continue to impose substantial obstacles in the process of
accounting convergence and standardisation. Until then, whether the financial information become
more reliable and comparable after the adoption of IFRS is still

The Conceptual Framework : South Pacific Stock Exchange...
Question 1 Part A Conceptual Framework A conceptual framework can be defined as a logical
system that interconnects objectives and fundamentals which lead to consistent standards (Deegan,
2012). The objectives of a general purpose financial reporting forms the foundation of the
conceptual framework. South Pacific Stock Exchange Disclosure Requirements. The South Pacific
Stock Exchange is the only stock exchange in Fiji. The stock exchange sets out a criteria for
companies listed on the stock exchange to which they need to abide for disclosure purposes. The
IASB conceptual framework sets a scope for financial reporting and is a strategic direction for
financial reporting. The conceptual framework (CF) lays out standards, definitions, concepts and
pathways for achieving optimal financial reporting. However, it clearly states that the IFRS
standards override the CF: "This Conceptual Framework is not an IFRS and hence does not define
standards for any particular measurement or disclosure issue. The Board recognises that in a limited
number of cases there may be a conflict between the Conceptual Framework and an IFRS. In those
cases where there is a conflict, the requirements of the IFRS prevail over those of the Conceptual
Framework. As, however, the Board will be guided by the Conceptual Framework in the
development of future IFRSs and in its review of existing IFRSs, the number of cases of conflict
between the Conceptual Framework and IFRSs will diminish through time"

Contemporary Issues Of Accounting Theory Fair Value...
ACC307 INDIVIDUAL ASSIGNMENT TASK 1: Contemporary Issues of Accounting Theory Fair
Value Measurement Overview After the International Accounting Standards Board (IASB) released
the IFRS 13 Fair Value Measurement in May 2011 for the purpose of completing its joint project
with the US Financial Accounting Standards Board (FASB) on fair value, the Australian Accounting
Standard Board (AASB) released the Australian equivalent – AASB 13 Fair Value Measurement in
the September of the same year. This standard permitted early adoption but generally started to take
effect for the financial reporting periods beginning from 1 January 2013. This new standard requires
no new requirement for the adoption and but it was accompanied with the issuing of AASB 2011–8
Amendments to Australian Accounting Standards arising from the AASB 13 which has made
consequential changes to 32 standards and 9 interpretations for the adoption in Australia. The new
standard attempts to unify IFRS and US GAAP by specifying how entities should apply the fair
value measurements that applied in previous IFRS standards. It clarifies and redefines fair value as
"the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date", sometimes referred to as an "exit
price". It also sets out a single source guidance for a robust measurement framework to ensure that
the requirements are applied consistently and have clear

International Asset And Current Asset
3.Difference between non–current asset and current asset
Non–current asset can be named as Fixed–asset as well. While current asset is named as non–fixed
asset. Non–current asset generally consist of net property, plant and equipment intangible assets
such as goodwill and other asset. (Business Analysis and Valuation: Text and Cases By Krishna G.
Palepu, Paul M. Healy, Victor Lewis Bernard)For current asset, it is an asset that is likely to be
realized in, or is intended for sale or consumption in, entity's normal operating cycle; it is held
primarily for the purposed of being traded; it is expected to be realized within 12 months after the
reporting period; it is cash or cash equivalent. Current assets are held with the intention ... Show
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5. Prudence concept
Prudence is the normal accounting practice to fully recognize losses as soon as they become
apparent but not to recognize revenues until they are certain. In more recent times the prudence
concept has become known as the ' realizations principle' in that only gains that have been 'realised'.
Unrealised gains would not be recognized until the value is realized through its sale. (Financial and
Accounting for business by Bob Ryan p.108)
Furthermore, it also prevails over the matching concept if the two conflict. For instance, the value of
the prudence should be valued for the net realizable value instead of the market price. Where NRV is
above cost, the profit likely to arise in the near future is ignored and stock remains in the accounts at
the lower figure until the sale occurs. On the other hand, where NRV is below cost, stock must be
immediately restated at the lower figure so that full provision is made for the foreseeable future loss.
( Introduction to Accounting By Pru Marriott, J R Edwards, Howard J Mellett)
In addition, prudence is also the ethic duty that an accountant should obey and follow, where they
should abbreviate, identify and induce the main facts of a business or an organisation. For instance,
he/she should not overstate the asset figure by using market value or sales value in the balance sheet.
He should provide the accumulated

Can ABC bring mixed results?
Can ABC bring mixed results?
Landry, Steven P[pic]; Wood, Larry M[pic]; Lindquist, Tim M[pic]. Strategic Finance[pic]78. 9[pic]
(Mar 1997): 28–33.
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Abstract (summary)
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Part of Hewlett–Packard's success has been attributed to its decentralized organizational structure,
which provides many advantages that often produce diverse solutions to market–focused problems.
However, this diversity of solutions also can bring mixed results when activity–based costing (ABC)
is implemented. HP's Colorado Springs Division experienced a less than totally effective ABC
implementation. Over the period from August 1988 to August 1989, the Colorado Springs Division
designed ... Show more content on Helpwriting.net ...
At the Colorado Springs Division, participants attempted to select a driver for just about every
activity in a process rather than picking drivers for just the top two or three critical activities of a
particular process. At one point the Division had more than 20 cost drivers for process areas in
manufacturing. These drivers included, but were not limited to, preferred, neutral, and nonpreferred
parts; test times of the produced instruments; number of parts to build a product; and number of
overhead structures affecting individual processes. Extending 20+ cost drivers over numerous
processes created a rather large information matrix. In the scheme of a $30 million structure, the
Division found itself identifying drivers and setting driver targets for a huge number of operations.
Therein lay the trap.
Management should have established priority goals, focused on the critical processes, and trimmed
the costs associated with those processes. In essence, organizations must understand the critical
activities that drive costs in order to trim those costs. Preferably, the Division should have identified
two or three of the absolutely critical process areas, identified two or three drivers for those areas,
and focused solely on those drivers initially. Such a prioritization would have achieved better focus
on driving down cost elements such as labor, material, and overhead, thus allowing for more
efficient and effective modification of product cost structures that

AASB Framework
AASB Framework AASB CF 2013–1 December 2013 Amendments to the Australian Conceptual
Framework Obtaining a Copy of this Pronouncement This pronouncement is available on the
AASB website: www.aasb.gov.au. Alternatively, printed copies are available for purchase by
contacting: The Customer Service Officer Australian Accounting Standards Board Level 7 600
Bourke Street Melbourne Victoria AUSTRALIA Phone: Fax: E–mail: Website: Postal address: PO
Box 204 Collins Street West Victoria 8007 AUSTRALIA (03) 9617 7637 (03) 9617 7608
publications@aasb.gov.au www.aasb.gov.au Other Enquiries Phone: Fax: E–mail: (03) 9617 7600
(03) 9617 7608 standard@aasb.gov.au COPYRIGHT © Commonwealth of Australia 2013 This
AASB pronouncement contains IFRS ... Show more content on Helpwriting.net ...
Main Features of this Pronouncement Application Date This pronouncement makes amendments to
the Framework for periods ending on or after 20 December 2013, with allowance for earlier
application. AASB CF 2013–1 4 PREFACE Main Amendments This pronouncement replaces the
guidance in the Framework on the objective of general purpose financial reporting and the
qualitative characteristics of useful financial information with, as an integral part of the Framework,
the Appendix: Objective and Qualitative Characteristics. This pronouncement also withdraws SAC
2. AASB CF 2013–1 5 PREFACE ACCOUNTING FRAMEWORK AASB CF 2013–1
AMENDMENTS TO THE AUSTRALIAN CONCEPTUAL FRAMEWORK Objective 1 The
objective of this pronouncement is to make amendments to the Framework for the Preparation and
Presentation of Financial Statements (Framework) in relation to the objective of general purpose
financial reporting and the qualitative characteristics of useful financial information, and to
withdraw Statement of Accounting Concepts SAC 2 Objective of General Purpose Financial
Reporting. Application 2 This pronouncement applies to general purpose financial statements
relating to periods ending on or after 20 December 2013. 3 This pronouncement may be applied to
periods beginning on or after 1 January 2005 that end before 20 December 2013. When an entity

Ethics and Conceptual Framework Paper
Ethics and Conceptual Framework Paper Conceptual Framework There are two major philosophies
in accounting consisting of a principles–based system for accounting and a rules–based system for
accounting. The following discussion will speak about these two philosophies and will define one as
being a best fit for encompassing the role of ethics and the conceptual framework. The conceptual
framework was established by the Financial Accounting Standards Board (FASB) and is used to
help define the boundaries of accounting. It gives definitions of key terms and establishes consistent
standards by which fundamental issues are defined. This makes it easier to facilitate discussion and
leads to greater efficiency in making accounting judgments. ... Show more content on
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Since accountants are making important financial decisions that often have a large impact on the
financial well–being of companies and individuals, there have been increasing instances of lawsuits
brought against auditors for violations to policies. These are all supporting reasons why accounting
requires sound judgment and ethics and a willingness to be proactive in researching to gain
knowledge

Can Conceptual Framework Advance The Development Of...
Can Conceptual Framework advance the development of accounting standard?
International Accounting standard Board (IASB) is 'responsible for the development of high quality
global accounting standards for use in the world's capital markets and by other users.' It is the
standard–setting body of the International Accounting Standards Committee (IASC) Foundation. It
was formed in 2001 to replace IASC. The objectives of IASC foundation are to develop a single set
of global financial reporting standard and to encourage the use of those standard.
In order to overcome the differences between national accounting practices, a lot of national
standards bodies have jointly agreed and adopted a series of International Financial Reporting
Standards ... Show more content on Helpwriting.net ...
Generally accepted accounting principles (GAAP) usually outline such standards in their
frameworks. The IASB conceptual framework would classify these into fundamental qualitative
characteristics and enhancing qualitative characteristics.
IASB emphasize the following qualitative characteristics related to usefulness of financial
information. There are Relevance, Faithful representation, Comparability, Verifiability, Timeliness
and Understandability.
Relevance of information is defined in terms of whether the information are relevant to the
decision–making needs of users, helping users to assess past, present, and future events, or to
confirm or correct their past evaluations. Relevant information must have predictive or confirmatory
value. Reliable information is free from material error and bias. Faithful representative means that
the information must faithfully and completely reflect the transaction or other company's financial
situation, either claiming to represent or may reasonably be expected to represent. Comparability
means information should be presented in an easy way to compare with information about the same
businesses for different periods; or easily compared information with different business for the same
or different period, to enable users to make significant comparisons. Verifiable means information
be tested through observations or estimation which increases representational

Auditor Independence
Introduction Independence is a fundamental to the reliability of auditors' reports. It is an attitude of
mind characterized by integrity and an objective approach to professional works. A professional
auditor should work both independent and seen to be so. Nowadays, but, the trend of providing non–
audit services to audit clients seem to be sweeping accounting firms all over the world; impacts of
independence impairment caused by this trend should not be ignored.
The Meaning of Independence The essential feature of an audit is its independence and, if an
accountant performs the accountancy work and then checks it himself, this checking cannot be
viewed to be an audit because it lacks independence. From ACCA's Code of Ethics, the ... Show
Under APB Ethical Standards the concept of auditor independence shifted in favor of objectivity and
neutrality in the reporting of the financial position and the results of operations, rather than loyalty
to a particular party.
The Ethical Standards allow audit firms to offer consulting services such as internal auditing and
information technology but are subject to certain restrictions, and audit firms are required to disclose
fees received from auditing and all non–audit services. However, without providing clear
distinctions which makes grey area exists, the rules should err on the side of caution. Auditors and
their clients are likely to continually test the limits of what is permissible, including by litigating
restrictions they oppose.
UK's Combined Code on Corporate Governance only recommends that audit committees develop
policies to govern the future provision of non–audit services, but does not require a pre–approval of
non–audit services by audit committees. No specific enforcement mechanism ensures that
management does not become involved, directly or indirectly, in selecting auditors or determining
audit fees and the scope of audit. Ethical code requirements should focus to a greater extent on the
issue of to what extent client management may still be able to influence the audit fee and the scope
of audit engagement.
Explanation of the Current and Emerging Developments In order to increase revenue, recently,
accounting firms not only provides

WileyPLUS Chapter Two
WileyPLUS Chapter Two Copyright © 2009 John Wiley & Sons, Inc. All rights reserved.
WileyPLUS Chapter Two SUMMARY OF STUDY OBJECTIVES 1Identify the sections of a
classified balance sheet. In a classified balance sheet, companies classify assets as current assets;
long–term investments; property, plant, and equipment; and intangibles. They classify liabilities as
either current or long–term. A stockholders' equity section shows common stock and retained
earnings. 2Identify and compute ratios for analyzing a company's profitability. Profitability ratios,
such as earnings per share (EPS), measure aspects of the operating success of a company for a given
period of time. 3Explain the relationship between a retained earnings statement ... Show more
Current assets – Cash and other resources that companies reasonably expect to convert to cash or
use up within one year or the operating cycle, whichever is longer. Current liabilities – Obligations
that a company reasonably expects to pay within the next year or operating cycle, whichever is
longer. Current ratio – A measure used to evaluate a company's liquidity and short–term debt–paying
ability; computed as current assets divided by current liabilities. Debt to total assets ratio – Measures
the percentage of total financing provided by creditors; computed as total debt divided by total
assets. Earnings per share (EPS) – A measure of the net income earned on each share of common
stock; computed as net income minus preferred stock dividends divided by the average number of
common shares outstanding during the year. Economic entity assumption – An assumption that
every economic entity can be separately identified and accounted for. Financial Accounting
Standards Board (FASB) – The primary accounting standard–setting body in the United States.
Copyright © 2009 John Wiley & Sons, Inc. All rights reserved. WileyPLUS Chapter Two Free
cash flow – Cash remaining from operating activities after adjusting for capital expenditures and
dividends paid. Full disclosure principle – Accounting principle that dictates that companies disclose
circumstances and events that make a difference to financial statement users. Generally accepted
accounting

4 Principal of Qualitative Characteristic
4 PRINCIPAL OF QUALITATIVE CHARACTERISTIC
Understandability
An essential quality of the information provided in financial statements is that it is readily
understandable by users. For this purpose, users are assumed to have a reasonable knowledge of
business and economic activities and accounting and a willingness to study the information with
reasonable diligence. However, information about complex matters that should be included in the
financial statements because of its relevance to the economic decision–making needs of users should
not be excluded merely on the grounds that it may be too difficult for certain users to understand.
Relevance
To be useful, information must be relevant to the decision–making needs of users. Information ...
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Thus, for example, a balance sheet should represent faithfully the transactions and other events that
result in assets, liabilities and equity of the entity at the reporting date which meet the recognition
criteria.
Most financial information is subject to some risk of being less than a faithful representation of that
which it purports to portray. This is not due to bias, but rather to inherent difficulties either in
identifying the transactions and other events to be measured or in devising and applying
measurement and presentation techniques that can convey messages that correspond with those
transactions and events. In certain cases, the measurement of the financial effects of items could be
so uncertain that entities generally would not recognise them in the financial statements; for
example, although most entities generate goodwill internally over time, it is usually difficult to
identify or measure that goodwill reliably. In other cases, however, it may be relevant to recognise
items and to disclose the risk of error surrounding their recognition and measurement.
Substance over form
If information is to represent faithfully the transactions and other events that it purports to represent,
it is necessary that they are accounted for and presented in accordance with their substance and
economic reality and not merely their legal form. The substance of transactions or other events is not
always consistent with that which is apparent from their legal or contrived

Harmonization of Accounting Standards
Abstract Discussion on harmonization is started quite long time ago. Its impact on the countries
economy is good or bad is the central idea of this essay. This essay is written specifically on the
accounting standard used in Australia. This essay starts with introduction on various topics such as
conceptual framework, IASB, Sacs then it discussed the issue of harmonization. Harmonization will
have positive impact on the economy because it attracts overseas investors to invest in Australia.
This essay covers difference between conceptual framework developed in Australia and IASB
framework. There are given lot of difference such as treatment of non for profit entity is same as the
public entity in A–IFRS. Reporting entity concepts and ... Show more content on Helpwriting.net ...
R., and S. Jones, 2002 Conceptual framework is like a constitution for standard setting process. It is
the concepts to define nature, subject, and purpose, of the financial report. it has many advantages to
have a conceptual framework for than company for example when there is a conceptual framework
implemented in the country then all business bodies follows that framework and so there is better
communication between different business entities. Otherwise it is not possible if there is no
conceptual framework in the country. The AARF (Australian accounting research foundation) has
discussed many different benefits of having conceptual framework as follows all financial reports
will be in consistent with others. Setting conceptual framework is also economical for the country.
More advantages are given below: Those who made the framework are now more responsible and
accountable for their actions .entities are now more accountable if they do not proved any disclosure
or giving false information. CF provides a means of communicating key concepts to financial report
to preparers and users, as well as providing guidance to reporting entities when no specific standards
address a particular issue. Financial reports made by the help of conceptual framework are
consistent and more in logical manner so that there is more understandability in the financial reports.
Because standard–setters will have harmony on many important issues, the

The Importance Of Financial Reporting On Decision Making...
The Importance of Financial Reporting in Decision Making Qin Tang 15025913 Massey University
MASSEY UNIVERSITY School of Accountancy/Economics and Finance/Management Lecturer's
Name Paper Number Paper Name Jill Hooks 110.702 Financial Accounting and Reporting Honesty
Declaration I declare that this is an original assignment and is entirely my own work. Where I have
made use of the ideas of other writers, I have acknowledged (referenced) the source in every
instance. Where I have used any diagrams or visuals produced by others, I have acknowledged
(referenced) the source in every instance. This assignment has been prepared exclusively by me for
this paper and has not been and will not be submitted as assessed work in any other academic paper.
I am aware of the Code of Student Conduct on the Massey University web site
http://www.massey.ac.nz/massey/about–massey/calendar/statutes–and–regulations/code–of–student–
conduct.cfm, clause 2 (f), wherein it states [Students shall] "act with honesty and integrity in
submitting material or imparting information to the university". Assessment & Examination
Regulations clause (7) clarifies further that "dishonesty" is a breach of the Code of Student Conduct
and will be dealt with accordingly. Family Name Given Name(s) ID number Student Signature Date
Tang Qin 15025913 Qin Tang 29/04/2015 The Importance of Financial Reporting in Decision
Making Introduction Financial accounting and

Advantages And Disadvantages Of Computer Based Accounting...
This is the first type of accounting system. It utilizes paper–based journals and ledgers. Nowadays,
Computer–based transaction systems replaced some paper records into computer records. Manual
system is labor intensive for this system relies on human processing. Because manual system relies
on human processing, they may be prone to error. Organizations employ multiple forms of
information technology in their accounting information system. Because of the advancements in
information technology computer–based transaction system were created. In this system, accounting
data are kept separately from other operating data. At this point, there is a greater degree of
compartmentalization of work in order to preserve the integrity of accounting information ... Show
This is consisting of modules that deal with the business accounting systems. A simple accounting
package might also contain one module or also referred to as stand–alone module. But most of the
time, it will consist of several modules. Examples of this are the Quick Books and Peachtree.This
system reduces inefficiencies and information redundancies. Relational database systems such as
enterprise resource planning (ERP) depart from the accounting equation method of organizing data.
This system captures both financial and non–financial data, and then it stores that information in the
data warehouse. The advantages of this system include recognition of business rather than just
accounting events; the support in the reduction in operating inefficiencies and; the elimination of
data redundancy.For an accounting system to be considered as effective it must meet the basic
objectives of information systems. The first objective is that they must pass the cost benefit principle
or cost benefit relationship. Financial information is not free, other companies even spend millions
every year just to gather and organize financial information to assemble into their financial

The Balance Between Relevance and Materiality
ais Contents Introduction 1 Relevance and reliability overview 1 The balance between relevance and
materiality 2 Balancing relevance and reliability 2 The balance between flexibility and timeliness 3
Conclusion 3 Introduction Conceptual framework is a coherent system of interrelated objective and
fundamentals that is expected to lead to consistent standards (Degaan 2007). There are four items in
conceptual framework which are objective of financial reporting, qualitative characteristics of
accounting information system, element of financial statement, and operating guidelines. One of the
important items is qualitative characteristic because of that, this report focuses on qualitative
characteristic which ... Show more content on Helpwriting.net ...
Balancing relevance and reliability Accounting information must have both relevance and reliability
but sometime the information is very relevance but not reliability. For example when a report about
cost of building which have proper detail of information but the building was acquire in 1980.
Information require to balance and contrast relevance and reliability when determining how to
account for particular items (Alford et al. 1993). Produce information quickly and measuring the
information more accurate are the benefits if the accounting information contain of reliability and
relevance. The other consideration is about cost and benefit. It can be define as cost and benefit that
result from making a specific decision which have highly subjective process on many issue. Benefit
of accounting information provided for users should exceed the cost of providing it (weygandt et al.
2002) It can useful to establish precise definition but it also involve a range of judgment call and
wide open to criticism. To understand further about relevance and reliability this report will explain
about timeliness. The balance between flexibility and timeliness The other relevance aspect is
Timeliness. When information for decision making is not available when needed or it available so
long after reported events mean that the information not has value or useless and not

Department Of Accounting And Finance: A Case Study
COLLEGE OF MANAGEMENT, INFORMATION AND ECONOMIC SCIENCE
SCHOOL OF BUSINESS AND PUBLIC ADMINSTRATION DEPARTMENT OF ACCOUNTING
AND FINANCE
ROLE OF INTERNAL AUDIT ON ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVES. A
CASE OF COMMERCIAL BANK OF ETHIOPA.
SENIOR ESSAY SUBMITTED TO DEPARTMENT OF ACCOUNTING AND FINANCE IN
PARTIAL FULFILMENT OF BACHELOR OF ARTS DEGREE IN ACCONTING AND
FINANCE.
BY: GETANEH YENEALEM BER/1051/01 ... Show more content on Helpwriting.net ...
Recommendation and suggestion are provided by the researcher. The major once are the audit
department shall extend its scope in assessing risks proactively, create continuous and direct contact
with management, to have harmonious relationship and develop their value adding role.
Table of contents
Topics page Chapter one ................................................................................................1
Introduction.............................................................................................................1 1.1 Background
of the study..................................................................................1 1.2. Historical Background of CBE
........................................................................2 1.2.1Objectives of
CBE........................................................................3 1.3. Statement of the
problem...............................................................................4 1.4. Research
Questions...................................................................... ...............5 1.5 Objective of the study
..................................................................................5 1.5.1 General objective
........................................................................5 1.5.2 Specific
objectives.......................................................................5 1.6 Research Design and Methodology
.................................................................5 1.7 Data Analysis Methods
..............................................................................6 1.8 Significance of the study
.............................................................................6 1.9 Scope and Limitation of the study
..................................................................6 1.10 Organization of the paper
...........................................................................7 Chapter
Two................................................................................................8 Literature
Review..........................................................................................8 2.1

Zeff And Brown Accounting
Zeff (1978, p. 56) describes economic consequences as "the impact of accounting reports on the
decision–making behavior of business, government, unions, investors and creditors. It is argued that
the resulting behavior of these individuals and groups could be detrimental to the interests of other
affected parties. And, the argument goes, accounting standard setters must take into consideration
these allegedly detrimental consequences when deciding on accounting questions." Brown (1990, p.
89) states "financial information prepared in accordance with these standards can make a difference
in the decisions reached by suing the information...most accept the notion that cost/benefit
considerations should enter into setting accounting standards. Changes should be made only when
expected benefits exceed anticipated cost." similarly echoes Zeff's position. Zeff and Brown seem to
be of a similar mindset whereas Siegel (2013, p. 1) states "economic consequences are what results
from neutral, relevant financial information. If the market is provided with neutral, relevant financial
information, the economy will, benefit." Siegel seems to have a similar perspective but how does
one determine if the information is neutral and relevant? It may appear so to the person or group
who is providing the information to the FASB but to others it may not. ... Show more content on
Helpwriting.net ...
2) acknowledges "thirty–six years later, the overall topic of cost–benefit is still one of the most
challenging issues we face...if negative economic consequences of a new standards are asserted, we
pause. We then assess whether those are intended consequences of neutral financial information – a
leveling of the accounting playing field so to speak. Alternately, they could be the result of
unintentionally biased financial information. If it is the latter, the Board will look at the issue

Accounting Analysis On Accounting Standards
Accounting regulation is a complete set of theories that identified the economic, social and political
factors that are related with the development of accounting principles and standards and to serve the
best interest of societies. In 1930 and 1972 GAAP (Generally Accepted Accounting Principles) and
SSAP2 were introduced to reduce the accounting scandal and control and regulate the accounting.
Later in the year, FASB (Federal Accounting Standard Board) introduced conceptual framework to
provide better understanding from rules, theories and principles in accounting. However, regulation
in accounting is never neutral and different firm chooses different accounting rules and systems
where it suits particular people for particular result that ... Show more content on Helpwriting.net ...
Furthermore, this statement stat there is no market value in accounting where everything is based on
management's opinion. Moreover, using the related articles, how managers judge and manipulate the
financial statement will be elaborated in the following. This paper will critically evaluate how
accountant creates the truth and how accounting present and represent the situation in limited way
and manipulation will be supported by using statement and examples. Accounting represents reality
and act for a construction of social reality. It can be said that the economic reality is subjective
(Hines1991. P.316). Morgan also supports that accountants see themselves as involved in an
objective representing reality but in fact they construct the reality. For Example, Morgan (1988,
P.477) stat the artist painting of picture which represent the reality but in limited aspect of situation,
Hines also clearly sees that accounting practices involves bias and errors that does not show exact
amount and exact valuation of transaction. The part of financial accounting is to provide unbiased,
impartial and stable information to the public. In addition, Hine suggests that it is clear that
accounting rather than simply constructing the reality can also have real effect on the economy. The
result of change in accounting rules and standards

Introduction To Hanley 's Water Accounting
I believe the major purpose of Hanley's water accounting is to explore and investigate into this area
that nobody touch it before, by introducing the financial accounting procedures, it is easier for the
accountants to make use of their skills and technique to quantify the water resources. This can help
ultimately the people who use this information for decision making, for instance, the government's
policy on how to use the natural resources may change based on the outcome of the water
accounting, if they find out there is a shortage of water, or there is a trend. The government can take
some precautionary measures to tackle the problem, they can build more dams or water catchment
areas, or use sea water as the major source of water. Also, this can help to regulate the use of water
by changing the price of water in order to encourage people or industry to use less water if there is
any shortage. The role of accounting in terms of water are still developing, and at the moment, it is
just the beginning of it. As Australia is the first country that adopted the financial accounting model
into the water perspective, there is only limited data that is available and research it necessary in
order to have a more in–depth analysis of the information the to facilitate the water management.
Water accounting at this stage is just used as a guide or as a pioneer to explore this opportunity to set
up standards and rules to regulate and manage the water usage and maybe on how to

Positive Accounting Theory
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 income. Such selection presumably
increase the present value of bonuses if the compensation committee of the board of directors does
not adjust to the method chosen
2. Debt/equity hypothesis:
The debt/equity hypothesis predicts that ... Show more content on Helpwriting.net ...
92). The main objective of normative accounting theories is to provide guidance to individuals to
enable them to select the most appropriate accounting policies for given circumstances (Deegan,
2003, p. 90).
Therefore, the result of normative accounting research should provide prescription to inform others
about the optimal accounting approach to adopt and why this particular approach is considered
optimal.
Normative accounting research has resulted accounting theories that are relevant for the setting of
financial reporting standards (Mozes, 1992, p. 93). In this case, the FASB's (U.S Financial
Accounting Standard Board) call for normative research can be interpreted as a request for
accounting researchers to investigate whether the user specific and decision–specific qualities that
standard–setters require are present in the accounting data (Mozes, 1992, p. 93). A successful
example of normative accounting theories is conceptual framework for financial reporting published
by FASB. It was started in 1978 by SFAC (Statement of Financial Accounting Concept) No. 1:
Objectives of Financial Reporting by Business Enterprises.
Conceptual framework is defined by FASB as follow (FASB, 1980, p. i): Conceptual framework is a
coherent system of interrelated objectives and fundamentals that is expected to lead to consistent
standards and that prescribes the nature, function, and limits of financial accounting and reporting.
It is expected to serve the public interest by

The Nature Of Auditors ' Professional Scepticism
Introduction
Professional scepticism (PS) is critically important to the way in which auditing is conducted. It is
also an essential component of a qualified auditor. The prior literature (Hurtt et al, 2013) argued that
PS can be influenced by various factors, which arises the question regarding how PS should be
positively perceived and effectively conducted in practices. Professional scepticism is defined as an
attitude combined with a questioning mindset and a critical way of thinking towards auditing
practices (Nelson, 2009). However, there is a divergence among practitioners and academia of how
PS should be perceived and practiced. Neutral approach was suggested by early auditing standards
while presumptive doubt is growing under ... Show more content on Helpwriting.net ...
It is also widely asserted that skeptical mindset is critical to performing a rigorous and prudent
auditing with due professional care (Holm and Zaman, 2012). In addition, the extent to which PS
should be applied is vital for an auditor since it impacts both the accuracy and efficiency. Having too
little of it will bias the accuracy while too much will lead to extra human effort and cost. The
effective balance between risk and efficiency is the essence. In practice, there should be a limit on
the level of details an auditor can possibly reach and on the extent the auditing should be conducted
to.
Neutrality is the essence of unbiased scepticism. According to CICA handbook (2003), an auditor is
required to perform with a questioning attitude, having in mind that there may be the existence of
financial misstatement. It also indicated that being skeptical requires critical thinking upon evidence
obtained through the auditing process, and is alert for questionable documents regarding the entity
representations. However, it does not mean an auditor should be obsessively suspicious about
anything. Instead, it is suggested to have the capability to reach the balance without speculated
dishonesty or unquestioned trust. An objective evaluation should always be guaranteed, and a
neutral auditor should always present a suspension of judgement until having evidence or proving
the otherwise.
The above perspectives were supported by various literatures. One

The International Accounting Standards Board
The IASB Conceptual Framework is a framework developed by the International Accounting
Standards Board (IASB). In a nutshell, what this framework does is to lay out the concepts needed
for accurate preparation and presentation of financial statements to external users such as auditors,
tax authorities, investors, regulatory authorities and so on. According to the IASB, the Conceptual
Framework for Financial Reporting does the following;
"...describes the objective of, and the concepts for, general purpose financial reporting. It is a
practical tool that: (a) assists the International Accounting Standards Board (IASB) to develop
Standards that are based on consistent concepts; (b) assists preparers to develop consistent
accounting policies ... Show more content on Helpwriting.net ...
The IASB is also proposing reintroduction of some chapters which were revised in 2010 in
conjunction with FASB. One of such chapter is Prudence. According to the Exposure draft, "the
IASB now proposes to reintroduce an explicit reference to the notion of prudence (described as
caution when making judgements under conditions of uncertainty) and state that prudence is
important for achieving neutrality" (International Accounting Standards Board (IASB) 2015).
To understand what this proposal means, one has to understand the meaning of prudence in the
accounting context. The IASB defines prudence as "the exercise of caution when making judgments
under conditions of uncertainty." (International Accounting Standards Board (IASB) 2015). This
means that before figures can be entered in a financial or income statement, they must have been
confirmed. The amount of revenue and assets must not be overstated or understated. Likewise, the
amount of expenses and liabilities must not be overstated or understated. This is because such
overstatement or understatement can lead to incorrect income or incorrect expense figures in future
accounting periods. Another important concept that goes alongside

“The accounting profit figure is simply a measure of the...
"The accounting profit figure is simply a measure of the true profit of an organisation." Discuss.
In order to assess whether the accounting profit is a measure of the true profit it must first be shown
that there is such a thing as true profit. If we decide there is, we then need to know what it is exactly,
in order to assess the extent to which the accounting profit reflects this true profit figure. Before
studying this module I believed that the true profit was essentially the accounting profit calculated
correctly. I saw profit as being a simple calculation that would always return the same figure. As I
didn't realise the extent to which professional judgement is involved in reaching the profit figure I
couldn't identify the ... Show more content on Helpwriting.net ...
Therefore whatever true profit is, it is not the accounting profit, as I believed before.
1
Deegan & Unerman, Financial Accounting Theory, McGraw–Hill Education, 2011
Kvaal & Nobes, International Differences in IFRS Policy Choice (September 2, 2009). Accounting
and Business
Research, Forthcoming 2010. Available at SSRN: http://ssrn.com/abstract=1466693
2
I soon began to doubt that there even is such a thing as true profit. In the Hines article from the first
seminar Hines shows how accountants create reality when they describe it. In accounts objects only
exist once they are realised by the accountant3. Hines uses the example of revenue: "We recognise
revenue when it is realised. By naming it 'revenue', it becomes revenue.. Just like the black holes."
Concepts like revenue and profit are the creations of accountants. What they are depends on how
you define them. With real life objects (e.g. a chair), definitions may vary, however they are all
based on the existence of the same underlying object. With a concept like profit there is no object
until it's fully defined. Once I fully considered this the idea of true profit seemed strange. Profit was
created as an accounting concept and accountants decide what it is. Profit doesn't exist in reality
outside accounting – there is no such thing as true profit.
This idea was soon challenged in later seminars. Wagner argues that there is

Financial Reporting Council: the Use of a Sector Neutral...
Financial Reporting Council: The Use of a Sector Neutral Framework for the Making of Australian
Accounting Standards Introduction The Australian Financial Reporting Council (FRC) was
established on 1 January 2000 under section 225 of the Australian Securities and Investments
Commission Act 19891 (ASIC Act) for the purpose of overseeing Australia's accounting standard
setting process. One of the key functions of the Financial Reporting Council (FRC) is to provide
broad oversight of the processes for setting accounting standards in Australia. Specifically, the FRC
is responsible for determining the broad strategic direction for the setting of standards to be
followed by the Australian Accounting Standards Board (AASB). The AASB has ... Show more
Mr Simpkins' report was tabled at the FRC meeting held in Sydney on 22 June 2006. The FRC
agreed to make the report publicly available via the FRC web site. Matters for consideration The
FRC is seeking public comment on the following matters related to standard–setting, especially in
relation to the public sector and the other not–for–profit sector. Respondents are particularly
requested to provide the reasons for their views, whether supportive or critical of the identified
issues. The matters on which the FRC is seeking comment, which are reproduced in Part 8 of Mr
Simpkins' report, are: 1. In your view, how well are the needs of all users of general purpose
financial reports, including users of public sector and other not–for–profit entities in Australia, being
met? 2. Will the current approach of the AASB enable the standard–setter to respond to the more
challenging environment of the future and ensure the needs of public sector and other not–for–profit
users are appropriately met? 3. Do you consider that having a conceptual framework that is
applicable and appropriate to all entities is a necessary element in Australian standard–setting for all
sectors? What approach to establishing a conceptual framework(s) do you consider appropriate? 4.
Different approaches could be used to set standards in Australia. Which approach do you

Principles and Assumptions Used in Preparing Accounting...
Introduction 1. definition of accounting: [2] *"Accounting is a set of principles and procedures
relating to the registration and compilation, analysis and interpretation of financial data for the
purpose of determining the outcome of business and its financial position". * "A method of
recording and tabulating and summarizing operations and financial events and then interpret the
results". *Body: 2.Assumptions used in accounting: [1] What assumptions used in accounting is
generally predict solutions through experimentation of phenomena to upgrade them to the level of
reality through the use of a combination of induction and deduction, and when the results to an
acceptable degree of accuracy, it can be considered the ... Show more content on Helpwriting.net ...
3.accounting principles: [1] Means the key fact relied on other facts or fact initial build other facts,
in this sense, the accounting principles are a set of agreed rules and generally accepted and not be
neutral about the stability of the current image, and those rules include all registration procedures in
accounting books and financial reporting and basic concepts and assumptions based on the
economic basis, and these principles are : a) cost: Under its principle to evaluate all elements of
economic resources and their usage and expenditure and revenue reflected in financial statements
with their original cost, regardless of all the volatility in the economic value as a result of ongoing
changes in the purchasing power of money, the most influential of this principle is the long term
assets (buildings, machines, machinery, transport equipment, furniture, etc.) are corroborated in
records, and financial statements at cost, regardless of the market price to be Straightened by
calculating the so–called consumption account originally as a aims to distribute PCs burden the
historical cost of the asset. b) The principle of corresponding income expenses: The objective of
preparing the financial statements statement by the unit's accounting of the profit or loss on a
particular financial and the goal must be to identify revenue accounting period and deducted

Standard Issues: Aicpa
Standard Issues: AICPA
The American Institute of Certified Public Accountants has created a code of professional conduct
that all certified public accountants must follow. This code of conduct lists the responsibilities CPAs
have when working with a company 's financial information. The AICPA also includes information
regarding the integrity, objectivity, independence and due care that CPAs must use when working in
the accounting industry. The AICPA offers an ethics course for accountants to refresh their
understanding of accounting ethics.
The AICPA professional code of conduct is designed to protect the individual and users of the
company's financial information. The accounting scandals of Enron, WorldCom and Sunbeam
during the ... Show more content on Helpwriting.net ...
The Code of Professional Conduct could not possibly proscribe every action that is to be avoided.
In light of the strict principles and rules of the AICPA, accounting ethics has been deemed difficult
to control as accountants and auditors must consider the interest of the public which relies on the
information gathered in audits while ensuring that they remained employed by the company they are
auditing. They must consider how to best apply accounting standards even when faced with issues
that could cause a company to face a significant loss or even be discontinued. Due to several
accounting scandals within the profession, critics of accountants have stated that when asked by a
client "what does two plus two equal?" the accountant would be likely to respond "what would you
like it to be?". This thought process along with other criticisms of the profession 's issues with
conflict of interest, have led to various increased standards of professionalism while stressing ethics
in the work environment.
From the 1980s to the present there have been multiple accounting scandals that were widely
reported on by the media and resulted in fraud charges, bankruptcy protection requests, and the
closure of companies and accounting firms. The scandals were the result of creative accounting,
misleading financial analysis, as well as bribery. For example, various companies had issues with
fraudulent accounting practices, including Enron, WorldCom and AIG. One

The End Of Accounting And The Path Forward For Investors...
I. INTRODUCTION
Baruch Lev and Feng Gu authors of "The End of Accounting and The Path Forward for Investors
and Managers" indicate that over the past 110 years, the structure and content of financial reports
has not changed, and that the role that these reports play in influencing the decisions of investors has
greatly diminished. Lev and Gu make a case that non–transaction events that are not captured by the
financial reports such as those disclosed through 8–k filings with the Securities and Exchange
Commission ("SEC") have a greater impact on stock prices, and thus more useful to investors. In
addition, they suggest that one of reasons for the decline in usefulness of financial reports stems
from the increase of estimates that has made its way into these reports (Lev and Gu 2016).
This paper will analyze these views as they apply to the discloser of segment information for public
entities as required by topic 280 of the FASB accounting standards codification, and discussed in
Statement of Financial Standards No. 131 ("SFAS 131). The paper is structured as follows: Section
II provides an overview of the objective and general purpose of financial reporting and the
qualitative characteristics off useful financial information as determined by the Financial
Accounting Standards Board ("FASB"), section III introduces the concept of segment reporting and
outlines the requirements for disclosures of segment information for public companies, section IV
evaluates the relevance of

financial accounting
21. Generally accepted accounting principles c. derive their credibility and authority from general
recognition and acceptance by the accounting profession. 22. A soundly developed conceptual
framework of concepts and objectives should d. all of these. 23. Which of the following (a–c) are
not true concerning a conceptual framework in account–ing? c. It should be based on fundamental
truths that are derived from the laws of nature. S24. Which of the following is not a benefit
associated with the FASB Conceptual Framework Project? d. Business entities will need far less
assistance from accountants because the financial reporting process will be quite easy to apply. 25.
In the conceptual framework for financial ... Show more content on Helpwriting.net ...
all of these. 47. In classifying the elements of financial statements, the primary distinction between
revenues and gains is c. the nature of the activities that gave rise to the transactions involved. 48. A
decrease in net assets arising from peripheral or incidental transactions is called a(n) c. loss. 49. One
of the elements of financial statements is comprehensive income. As described in Statement of
Financial Accounting Concepts No. 6, "Elements of Financial Statements," comprehensive income
is equal to d. none of these. 50. Which of the following elements of financial statements is not a
component of compre–hensive income? b. Distributions to owners P51. Which of the following is
false with regard to the element "comprehensive income"? d. It excludes prior period adjustments
(transactions that relate to previous periods, such as corrections of errors). S52. According to the
FASB conceptual framework, earnings b. exclude certain gains and losses that are included in
comprehensive income. S53. According to the FASB Conceptual Framework, the elementsassets,
liabilities, and equitydescribe amounts of resources and claims to resources at/during a a. Yes No
S54. Which of the following basic accounting assumptions is threatened by the existence of severe
inflation in the economy? a. Monetary unit assumption. S55. During the lifetime of an entity
accountants

Accounting Statement: The Origin Of Positive Accounting...
College of Business, Hospitality and Tourism STUDIES
DEPARTMENT OF ACCOUNTING
ACC 706
ACCOUNTING THEORY
MAJOR ASSIGNMENT
Positive accounting theory
NAME: FAMIZA SHAGUFA NISHA (2013112840) ALZARIA FAREEN NISHA (2013112840)
Methodology
ABSTRACT
Literature review
Watts and Zimmerman were the major contributors of the positive accounting theory which was
based on economic assumptions stating that all individuals actions are derived through self interest
and that individuals would act in an opportunistic manner to the extent that the actions will increase
their wealth.
Positive accounting theory is a form of motivation to the managers of the entity's that enable
managers to choose between accounting methods inorder to achieve the required reports or
objectives.
In the past four decades, positive ... Show more content on Helpwriting.net ...
Changing accounting policy
2. Managing discretionary accruals
3. Timing of adoption of new accounting standards.
4. Changing real variables
5. Capitalize operating expenses.
Efficient Market Hypothesis

The origin of positive accounting theory is the Efficient Market Hypothesis. According to Fama, the
efficient market hypothesis is based on the assumption that capital markets react in an efficient and
neutral manner to publicly available information. The Efficiency Perspective is taken into Positive
Accounting Theory as it explains how various managers choose accounting methods that show a
true representation of the firm's performance.
The perspective taken is that security prices reflect the information content of publicly available
information and this information is not restricted to accounting disclosures. a. Efficient Capital
Market vs The Accounting Method
The prices of security will not react to the release of the accounting results if the market anticipation
matches with the accounting information released by the organization. b. The choices of managers
under the Efficient Market

Financial Accounting And Reporting Standards
Financial Accounting and Reporting Standards
Jeremy J Boston
Saint Leo University Abstract Financial accounting has become more complex as our country
grows. The United States has established a core financial body to ensure all financial statements are
published within the prescribed guidelines so that any creditor or investor is able to read and
understand the information. The FASB was created to ensure that these guidelines are followed and
they are well–paid individuals so there is little chance of them keeping ties with their private firms
which creates a trust with the public. The FASB crated a conceptual framework that all companies
must adhere to. This ensures that investors, creditors and the public receive an honest ... Show more
Financial Statements and Financial Reporting
Challenges
Along with the demand for a more universal form of accounting report come many challenges.
Many of them are in the form of the Sarbanes–Oxley Act. Scandals within the accounting
departments in companies such as Enron, Rite Aid, and Xerox caused this act to be created. The
Sarbanes–Oxley Act created the Securities and Exchange Commission, SEC, which helped
standardize all financial information that was passed along to the stockholders. Auditors were
affected as a part of the act in the sense that they became more independent and strong. The audit
committee's became independent members with prior financial expertise. They were however
limited to no more than a 5–year partner rotation within their respective firms. CEO's and CFO's
were also to be help more accountable for their financial reporting. CEO's and CFO's are now
required to personally sign off and certify financial statements. If there is a mistake they forfeit their
entire bonus. Within each organization there is also requires being an internal checks and balances
process to prevent and detect possible fraud. Most of all, there the Sarbanes–Oxley Act establishes a
code of ethics for all senior financial officers. This act is to ensure that public trust is maintained at
all times.
Objectives
According to Keiso, Weygandt, and Warfield (2013), Financial reporting's goal is to "provide
financial information about

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