HI6025 Accounting Theory and Current Issue TRIMESTER1, 2016 INDIVIDUAL ASSIGNMENT
Assessment Value: 20%
1This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook
2. It is the responsibility of the student who is submitting the work, to ensure that the work is in fact her/his own work. Incorporating another’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. Students can submit all assignments for plagiarism checking (self- check) on Blackboard before final submission in the subject. For further details, please refer to the Subject Outline and Student Handbook.
3.Maximum marks available: 20 marks.
4. Due date of submission: Friday Week
6 5. Assignment should be of 1,000 words each (2000 words in total). Please use “wordcount” and include in report.
Assignment Question 1 (10 Marks, 1000 Words)
Read the following quotation from Miller and Reading (1986, p. 64). If constituency support is necessary before particular accounting approaches become embodied in accounting standards, does this have implications for the ‘neutrality’ and ‘representational faithfulness’ (qualitative characteristics that exist in various conceptual framework projects around the world) of reports generated in accordance with accounting standards?“The mere discovery of a problem is not sufficient to assure that the Financial Accounting Standards Board will undertake its solution … There must be a suitably high likelihood that the Board can resolve the issues in a manner that will be acceptable to the constituency—without some prior sense of the likelihood that the Board members will be able to reach a consensus, it is generally not advisable to undertake a formal project”
Assignment Question 2 (10 Marks, 1000 words)
As Watts and Zimmerman (1986, p. 7) state, Positive Accounting Theory ‘is concerned with explaining [accounting] practice. It is designed to explain and predict which firms will and which firms will not use a particular accounting method … but it says nothing as to which method a firm should use’. Do you think that this represents an ‘abrogation’ of the academics’ duty to serve the community that supports them? General Instructions for both assignment questions You should then respond to the statement by arguing a position. Do you agree or disagree, explaining why. You should give consideration to events in recent years that may have had an influence.
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