International convergence of accounting standards is a major priority of both the International Accounting Standards Board (IASB) and the Australian Accounting Standards Board (AASB). The IASB is nearing completion of a lengthy project to converge its major standards with those of the US Financial Accounting Standards Board (FASB) while the AASB has recently completed Phase 1 of a project to align Australian accounting standards with those of New Zealand (Charted Accountants, 2016).
Some of these issues include:
- Consolidations
- Fair value measurement
- Financial statement presentation
- Financial Instruments
- Insurance
- Joint ventures
- Leases
- Revenue recognition
- Post employment benefits
Assignment Task 1: Contemporary Issues of Accounting Theory Essay (1000 Words)
Students are required to pick 2 issues from the above and provide the following:
1. Overview of the current discussion
2. Rationale for current discussion - why is the project being undertaken (500 words)
Assignment Task 2 Case Study (1,500 Words)
3. Some authors suggest: "IFRS will not require accounting for stewardship of public funds entrusted, or for the supply of services, both of which are core to the management of local authorities. And we know that a failure to measure almost always means a failure to deliver in management terms. This means we have a potential disaster on our hands." (Murphy, 2010)
a. Do you agree with this view? Why, or why not? Justify your answer with suitable explanations. (500 words)
4. Some authors claims that the IASB does not act in the public interest. They are a private cartel designed and promoted for the benefit of their biggest sponsors - the Big 4 firms of accountants.
a. Critically examine the validity of the above statement. What are the implications for accounting in different countries if the above allegation is true? (500 words)
5. Do you think IFRSs should be adopted by Australian local authorities? Why, or why not? (500 words)