Homework: Accounting Theory
Length: 2,000 words.
Learning Outcomes
• Describe the financial accounting standard setting process of Australia.
• Discuss current issues and developments in accounting theory and financial reporting.
• Evaluate different accounting theories and their implication in policy choice by managers.
• Explain the Conceptual Framework and apply it to accounting activities, and identify strategies to meet accounting issues and problems.
Requirements
Complete the following requirements for your approved ASX listed company, and support your answers with the annual reports and other relevant evidence from reputable sources or websites*:
• Evaluate different accounting theories and discuss their implications in policy choice by managers in your approved company/industry.
• Based on the Australian Conceptual Framework for Financial Reporting, evaluate the accounting policies adopted by your approved company and discuss the alternatives in policy choice.
• Discuss the required elements that make up the financial statements, and analyze how these elements are compiled by your approved company?
• According to the Australian Conceptual Framework for Financial Reporting Par. 6.1, "elements recognized in financial statements are quantified in monetary terms. This requires the selection of a measurement basis". In other words, measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the balance sheet and income statement. This involves the selection of the particular basis of measurements such as Historical cost, Fair value, Current cost, Value in use and fulfilment value. Identify and evaluate which measurement methods have been used by your approved company on current and non-current assets, and discuss the possible implications of selection the alternative measurement basis on financial reports.
(450 WORDS)
• Select any four items from the items listed under assets in the statement of financial position of the company and evaluate whether this treatment is in compliance with the Australian Conceptual Framework for Financial Reporting.
• Select any four items from the items listed under liabilities in the statement of financial position of the company and evaluate whether this treatment is in compliance with the Australian Conceptual Framework for Financial Reporting.
• Review the provisions and other notes disclosed in the financial reports and select any two items to evaluate whether the treatments are in compliance with the Australian Conceptual Framework for Financial Reporting.
• Critically evaluate the advantages and limitations of the Australian Conceptual Framework. Based on your research of this homework, also provides some recommendations for the future development of the Australian Conceptual Framework. Your response must make reference to at least four academic journal articles.
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.