AGENCY THEORY; BONUS PLANS; ETHICS (chapter 6, GFC supplement, Stevens & Thevaranjan)
What are the agency problems faced by entities?
Why is the structuring of directors remuneration important?
What are the implications of failing to struct
This is an interesting question and one that has certainly raised much debate in
the past. To answer it we need to first consider how we would define accounting.
If our definition of accounting is restricted to providing information about the
Advanced Accounting- Homework due in week 2
Short answer questions
1. With examples discuss the difference between a positive theory of accounting, a normative theory of
accounting and behavioural research?
There is no universally accepted theory of finan
Hines (1989, p.89) argues that conceptual frameworks are 'a
strategic manoeuvre for providing legitimacy to standard-setting
boards during periods of competition or threatened
government intervention.' The basis of Hines' argument is that
Short Answer Questions:
1. What is an agency relationship and what is agency cost? How can agency costs be
An agency relationship occurs when decision-making authority is
delegated from one party (the principal) to another party (the
Advance Accounting- Week 3 Homework
3. Realistically speaking, it is difficult to expect absolute objectivity or unbiased engagements
by accountants during the preparation of financial statements. Although accountants are
Unit Outline Tri 1-2016
COM101 Accounting Principles
COM101 Accounting Principles
Section 1: General Information
Unit administrative details
Name of Unit
Diploma of Commerce
Advanced Accounting Exam Question 2
Using evidence from your assignment discuss the limitations of stakeholder and
legitimacy theories to adequately explain the demonstrated behaviour of the
Legitimacy and Stakeholder theories are both systems or
The impact of social and environmental issues confronting businesses today have resulted
in the need for investors and related parties to be informed of activities occurring beyond
the measurement of profitability. With the gradua
Rule based approach vs principle based Approach
Regulation is defined by policing of some activity by an entity which is not party to, or
involved in, the activity being regulated (Mitnick 1980). Regulations involve two major
What is the importance of accounting reports in terms of capital market
theory and research? Justify your answer
Capital market theory research focuses on assessing the aggregate effect of
financial reporting on investors only (Deegan, 2008).
Compare and contrast any two articles. Your answer must clearly
identify the articles chosen and explain the reasons for selections.
The dominance of language is evident accounting reports and media
releases of companies. As SER or CSR as it is
The conceptual framework are broad principles used to guide accounting standards setters by
providing a base for considering the merits of alternative methods. In contrast, accounting standards
provide specific requirements must be compli
Discuss the impact of fair value accounting and reporting in
light of current standards, concept framework, theoretical
assumptions and current reporting issues in the market.
The impact of fair value accounting has seen a shift from the
7. Through the metaphor of balance, SER attempts to present the interests
of business as largely congruent with social and environmental wellbeing.
Thus, it tries to synthesise the interests of various social groups around
the fundamental aims of business
4. There are at least three circumstances under which a
environment or society and also increase the expected
value of the firm: where the possibility exists of
strategic interaction based on government inter
1. What has environment got to do with accounting? Explain.
Arguably, in terms of restricting the definition of accounting to providing information
about the financial performance of an entity to individuals that primarily have a
financial interest in the