1. How might institutional theory explain accounting disclosures?
Institutional theory is used to understand the influences of organizational structures such as
rules, norms and guidelines. Accounting disclosures are likely to be a way of demon
ACCOUNTING MEASUREMENT SYSTEMS
Chapter 6 Accounting Theory by Godfrey et al
Chapter 4 - Contemporary issues in accounting by
Rankin et al
Three main income and capital
The historic cost accounting system emerge
Student Name: _
Student ID: _
SAMPLE EXAMINATION SOLUTIONS
TACC406 - ACCOUNITNG THEORY AND APPLICATIONS
3 hours 10 minutes
Total Number of Questions: 5
o 25 multiple questions25%
o 5 short answer questions75% (2/3 small Qs)
CH7 (Topic 5) Asset
1. What attributes must something possess in order to be defined as an asset? Why? What are
the asset recognition rules?
For something to be defined as an asset, i
1. What is sustainability reporting? How does sustainability reporting relate to
Sustainability, or sustainable development, is concerned with development that meets
the needs of the present without compromising the ability
Accounting Theory_ Sample multiple choice questions
1. One of the key factors identified by Chambers in support of CoCoA is additivity.
Which of the following does not support this view expressed by Chambers?
a. Using different measurement scales in finan
Final Exam: Practice Questions
1. What attributes must something possess in order to be defined as an asset?
2. The Framework definition of assets requires future economic benefits to be
controlled by an entity before they can be regarded as an asset
15. The statement that best
defines what is meant by a theory
a. A coherent set of hypothetical,
principles forming the general
framework for a field of inquiry
What is a theory?
the coherent set of hypothetical, conceptual and pragmatic principles forming the general
framework of reference for a field of inquiry.
What is an accounting theory?
logical reasoning in t
1. What is meant by the term earning management? What are the incentives for
managers to manage earnings? (from Godfrey)
Earnings management occurs when managers use judgment or discretion within GAAP,
or structure transactions, to affect the i
Capital market research &
Philosophy of positive
Seeks to explain and predict accounting practice
Seeks to explain how and why capital markets react
to accounting reports
Topic 6 Assets and Related Special
Chapter 14 - Contemporary issues in
accounting by Rankin et al
Chapter 11 - Australian Financial Accounting
by Deegan 7e
Project Update: Leases (August 2014) - IFRS
1. What alternative measures are used in the accounting to value items?
Provide specific examples.
As discussed in Chapter 4 Measurement accounting uses a mix measurement model.
Traditionally historic cost has been the predominant measure in ac
What is the difference between a conceptual framework and accounting
Essential points relate to:
The conceptual framework provides high level concepts such as definitions of
elements of financial statements, qualitative characteri
Topic 2 Theories in Accounting
Chapter 3 Accounting Theory by Godfrey et al
Chapter 5 - Contemporary issues in accounting
by Rankin et al
The theories of regulation relevant
to accounting and auditing
Managers have incentives to voluntarily
POSITIVE THEORY OF ACCOUNTING
POLICY AND EARNINGS MANGEMENT
Early demand for theory
Capital markets research tried to explain the effects
was ultimately inconclusive and inconsistent
What attributes must something possess in order to be defined as an asset?
Why? What are the asset recognition rules?
For something to be defined as an asset, it must possess the following attributes:
future economic benefits or services will
1.What is the difference between a conceptual
framework and accounting standards?
a) Conceptual framework-definitions of elements
of financial statements, qualitative characteristics,
definition of general purpose of financial reporting.
Outline and differentiate the various definitions of international accounting.
International accounting, or international financial reporting, refers to a
description or comparison of accounting in different countries and the accounting
Topic 5 Fair Value Accounting
Chapter 10 - Contemporary issues in
accounting by Rankin et al
Chapter 14 Accounting Theory by Godfrey et
THE ROLE OF FAIR VALUE
Fair value used in accounting is ubiquitous,