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    Accounting Theory Assignment Help

    Accounting Theory Assignment Help

     Case Study 1 

    Q1. Principles-based standards requiring a conceptual framework
    - Conceptual framework 
    It is very much important to define the various aspects of conceptual framework in a much defined manner so as to ascertain the fundamental concepts that are very much related in this case scenario. On the other hand, the natures of accounting procedure are very well related with the different set of accounting principles and procedures (Weil, Schipper & Francis, 2013).  Thus, setting a particular standard can help in determining the standards that are primarily set by IASB and FASB.  The future standard that is determined within the framework would be very much helpful in assessing the various standards and guidelines. On the other hand, the various parameters of conceptual framework can be very well related with that that of accounting principles and laws. 
    Hence, it can be very well determined from the fact that the parameters of conceptual framework primarily aims to improve the different aspects of conceptual framework with respect to the frameworks that were existing previously (Fasb.org, 2017). On the other hand, the need of the conceptual framework initiates the level of transparency on the basis of financial reporting and accounting. Thus, the main purpose of analyzing the principle-based standard of financial accounting and forming a conceptual framework on the basis of that have been successful when it comes to providing proper financial information to the various group of investors. Hence, it can be very much evident from the fact that the principles that are mainly dealt with the different cases of objectives and concepts can come in handy at the time of defining the conceptual framework and analyzing the proper standard of accounting. It can result into various aspects of accountability, compatibility and sustainability process of the organization.
    Thus, the principle-based system of standard in the process of accounting can be very well derived from the various conceptual frameworks which are determined on the long-term basis. Here, with context to this particular case scenario, the entire conceptual framework has to be conducted on the standard of accounting principles and procedures (Gebhardt, Mora & Wagenhofer, 2014). The approach of a principle based system of accounting is very much related with that of the different cases of a conceptual framework, that are determined and laid down for each and every accounting principles and procedures in the long run scenario.
    Q2. Importance of IASB and FASB sharing a common conceptual framework 
    -  IASB and FASB principles
    It is a true fact that, the various parameters of FASB and IASB are having a common conceptual framework. This would result in assessing the statement of procedure of completion, updating along with analyzing the process of updating of the conceptual framework resulting in FASB and IASB framework. As per the various shreds of shreds of evidence that are being developed, a convergence of the accounting standard of IASB with that of FASB has yielded a greater amount of benefits to the world of accounting. One aspect that illustrates the implications of the standard of FASB determines the standard goals of the company in defining the principle-based standard of FASB. 
    Therefore the objective of accounting body of FASB has successfully resulted in ascertaining the standards with respect to a principle based process of accounting. On the other hand, accounting standards that are mainly developed provide the various target investors, the much-needed information, and knowledge regarding the important aspects of financial reporting procedures, which may help the investors to make sound decisions in the various operations of the business (Murphy & O’Connell, 2013).       
    Q3. Benefits of conceptual framework for some parties 
    Analysis of conceptual framework in providing help to the different parties
    The various applications of the system of the conceptual framework have been very much helpful when it comes to providing information to the creditors, investors along with some other external parties (Zhang & Andrew, 2014). This can be very much prevalent from the fact regarding the clubbing of IASB and FASB for the sole purpose of improving the practices of GAAP along with analyzing the IFRS. Hence, the usefulness of conceptual framework can very well be associated with several parties who are functioning actively in the field of accounting and finance. 
    Some of the parties that are being benefited comprise of the practitioners f financial statement and information, the different set of accountants and auditors who are very much involved in the process of financial statement and standards (Bohušová, 2014). In addition to these, there are certain financial analysts along with employees, customers, governmental agencies and relevant financial managers that are acting in different departments. As opined by Bradbury & Schröder, (2012), there is an immediate necessity for all the parties to have access to a well defined conceptual framework. This can be primarily due to the fact that conceptual framework acts as a major tool for success when it comes to producing reliable and transparent financial knowledge and information. On the contrary, the accounting set of standards that are mostly ascertained deals with proper reporting, analysis and evaluating the financial statements. Thus, the different implications of the process of a conceptual framework can come in handy at the time of preparing the different set of financial reports and information to the internal as well as the external users.
    Q4. Defining the cross-cutting issue with relation to the particular case scenario
     Accounting cross-cutting system
    The different analysis that is impacted by the cross-cutting system has laid to certain issues in the world of accounting scenario.  Moreover, the clear discussions of the various cross-cutting system of accounting can be impacted as a result of conflict between the accounting boards of IASB and FASB. One such noticeable instance where there had been a presence of cross cutting issues is that, the conceptual framework system has to suffer from certain flaws thus, leading to the provision of inappropriate results that are related to the financial aspects of any particular organization. This caused certain disruptions to the external and internal parties who are quite related with that of basic accounting and financial terms. 
    Moreover, the faulty system of accounting framework has laid to problems of the going concern concept of accounting. On the other hand, there were seen the higher level of the faulty system in the accounting statement and body of IAS 1 and IFRS, the financial statements that were presented did not hold much value in dealing with the financial aspects. Hence, the core issues that were dealt in this case of cross-cutting threw light on the false and misleading information provided by the financial statements.
    Case Study 2 
    Trend towards fair value accounting  
    Q1. Fundamental problems that are related to the financial statements which are based upon the historical cost principle under the principle of GAAP followed in the US
    Principles of GAAP
    The historical cost system of accounting stresses upon the various underlying principles and procedures that are very well formulated under GAAP. Under this procedure, the accounting or historical principle of various accounting principles and procedures determines the valuation of the asset on the basis of different historical methods. One of the major problem that is underlying this fact, that the assets that are estimated on the basis of its historical cost aspect do not give a clearer image of the financial parameters of the business enterprise (Goh et al. 2015). Basically, the old values that are ascertained by determining the financial aspect often seem to provide irrelevant and insignificant information on the part of the financial position that is mainly concerned in cases of assessing the exact financial position of the business enterprises. Thus, to put it into a nutshell, the key fundamental problem in this scenario mainly takes place by reflecting the value of assets and liabilities at the historical basis that has in turn resulted into the downfall of the company in the short term as well as in the long term scenario (Ryan, 2012). 
    Q2. Demonstrating the principle in accounting “economic reality reflected by accounts” 
    The accounting standard board of US namely, International Accounting Standard Board (IASB) has been very much helpful in presenting the true and fair value of information. On the other hand, this would result in assessing the reality of the accounting scenarios. In terms of ascertaining the various cases of economic realities, it can very well determine that the different aspects of accounting standards must be very much active when it comes to assessing the economic reality and at the same time analyzing the financial parameters that are mainly existing in the economy (Kaya, 2013). The financial statements that are determined in the books of accounting principles and policies are very much assessed in respect of the accounting principles and procedures in the long run future scenario.    
    Q3. Measuring economic reality 
    The different cases of economic reality can be properly assessed by taking into consideration, the value of the assets of the business that are determined on the basis of its monetary terms. On the other hand, the market price of the assets is determined on the basis of the stability of the cash flow system. On the other hand, the different aspirations that are dealt with that of economic realities have undergone changes as per the economic demands of the investors. Information regarding the future system of cash flow has also been categorized under the heads of economic realities (Liao et al. 2013). In several instances, the economic reality mainly refers to the situation where the cash flow system or earnings are related to that of the various transactions in relation to the economic reality. Thus, the different instances that are presented at the time of dealing with the economic reality of the financial statements and analysis are very well assessed in this scenario.
    Q4. Explaining reliability in accounting 
    Defining reliability
    The significance of the various procedures of reliability in the terms of accounting has been very much considered as per the guidelines provided by US accounting bodies of FASB. Apart from that, the concepts of reliability in respect of analyzing the financial reporting and accounting purposes. On the other hand, the process of reliability that is critically assessed by the accounting bodies of FASB mainly highlighted recording of the different set of information in a much systematic and organized manner. As commented by Venter, Emanuel & Cahan, (2014), the process of reliability concentrated upon the different aspects and needs of providing reliable information to the different set of users of accounting information. In certain cases, the cases of the reliability of financial statements stood out better chances in cases of providing true, fair and correct information to the external parties that can help in providing future implications of the economic aspect of the company. In various cases of initiating the various economic changes, it can clearly be dealt that, the financial statements of the company that are prepared at the end of the financial year can be very much in providing the greater amount of relevancy as well as the reliability of the financial statements. On the other hand, the various set of accounting implications that are determined help in the process of provision of clear and reliable information and data to the people who are engaged in the various field of accounting techniques and procedures. Henceforth, the principle of reliability can be determined on the basis of accounting procedures that can help in recording the various transactions of accounting in order to meet the various goals and principles of the accounting (Guidry & Patten, 2012).        
    Case 3 
    Disclosure of environmental liability 
    Q1. Discussing regarding the provision of FASB implemented by different firms 
    Principles of FASB in context to environmental liability
    In the recent times, considering the field of accounting there have been evidences that clearly presented the various problems and issues in relation to the environmental aspects. It is very much important for the different set of organizations that are operating to implement various safe measures in order to combat with the environmental issues that are been striking of late. On the other hand, it is very much essential to determine the essential elements that have been degrading the various environmental factors. The concerned accounting officials who are functioning in different departments must take care of the liabilities in response to deal with the environmental aspects of the organization and at the same time can meet the needs and aspirations of the external shareholders along with the shareholders who are currently associated with the different business processes of the organization. The first and foremost step that is needed to be implemented in this particular section of study is taking a detailed note of the actual assets and liabilities of the business (Chen, Cho & Patten, 2014). The US accounting standard board of FASB must play a proactive role when it comes to determining or estimating the fair value of the assets. Nonetheless, the environmental provision that is being ascertained mainly takes care of the different liabilities of environmental situations in the long term. On the other hand, the environmental costs or obligations must be eliminated by applying tactfully the principles and procedures that are formulated by the concerned accounting bodies of FASB. The costs that are implemented at the time of determining the future value of assets must be very much prevalent with that of environmental liabilities of the cost of asset. This would help in recognizing the amount of provision that is analyzed at the time of determining the value of asset. Hence, the environmental liability of the company must be reduced to an extent which would help the company in achieving rapid strides and gain a greater foothold in the tough competitive market scenario. Thus, the different set of provisions that are assessed at the time of determining the various aspects of environmental liability can help in creating a favorable effect on the various profitability and liquidity of the business enterprise.           
    Q2. Requirements of US companies in order to defer the recognition of liability
    Recognition of liability
    The different aspects that are practiced in the procedure of recognizing the various cases of liability determination helped in analyzing the reliability of the financial statements. On the other hand, the provision of cost did not take into account the recognition of liability purposes (Iatridis, 2013). A liability may take place where there have been different cases of reduction in the level of profit that is earned by the company. This, in turn, can cause the decrease in the various financial parameters such as the share price and profitability of the business enterprises. On the other hand, the information must be disclosed in a manner that can cause transparency in the financial reports and information.
    Q3. Ascertaining the recognition of liability with respect to current and future year profits and cash flow system 
    Several measures are to be implemented in order to promote the various implications of environmental sustainability. After recognizing the different liabilities in the different financial years, it is very much important to establish the system of rules and regulations in order to maintain stability in the system of cash flow processes. One such that could implement by the various management of the organization is actively promoting the different measures that are related to the Corporate Social Responsibility (CSR) of the business enterprises. Moreover, the shareholders of the company must play an active role in the process of successful implementation of the various measures of CSR. There may be cases, where the company may incur a higher level of operational activities for the sole purpose of maintaining sustainability and at the same time determining the different aspects environmental stability. On the other hand, if there are instances of increase in the operational activities of different departments of the business enterprises, it is experienced that the net profit of the company seems to be following a declining trend. Nonetheless, as a result of successful implementation of the various CSR activities, a particular business firm can gain a huge level of recognition in the long run future scenario. Thus, the evidence that is presented in this particular field of research implies that the successful incorporation of different CSR activities can cause enhancement in the total revenue and at the same time increase in the total profit scenario of the business. Hence, the stability that is found in the system of cash flow and profit conditions can be very much helpful in critically evaluating the environmental liabilities of the businesses.        
    Q4.  Recognition of disclosures of liabilities with relation to the environmental aspects  
    Disclosure of different set of liabilities
    The cases of environmental liability may be dealt when there is seen various manufacturing or production defects at the time of producing a particular product. As a result of a higher occurrence of the various environmental liabilities, the management of the company is forced to implement strategies for the purpose of maintaining the different aspects of environmental stability of business (Cox & Douthett, 2012). In the cases of adopting the various measures of sustainability procedures, the company can lead to gaining a higher amount of goodwill and recognition in the international market scenario. Moreover, the different instances of environmental sustainability and stability give rise to long-term economic benefits. On the other hand, this can initiate the practitioners or users of different financial statement and reports to formulate important decisions that are very much essential for smooth running of the day to day activities of the business enterprises. Hence, systems of proper disclosure van help in the process of prediction of proper financial projections such as proper inflow and outflow of the various systems of cash.
    The process of disclosure of accounting reports is widely being encouraged by the accountants and auditors who are performing effectively in the company. On the other hand, the items that are given utmost importance seem to be very much recognized in the context of assessing the fair value of the accounting principles and procedures.
    Thus, building on from the above idea, it can be very well concluded that the different financial managers who are operating in the different departments of business provide a greater level of emphasis on the amounts that are disclosed in the financial statements.