Financial Accounting Theory and Policy.
Q1: Describe and critically evaluate the current cost accounting model of financial accounting. What contribution can current purchasing power adjustments make to this model? (Required Reading: Topic4.PPT, ASC1986-1.ppt) Q2. Describe the International Accounting Standards Board??s concept of ??fair value?? and compare it to the concept of ˜deprival value’. Using van Zijl and Whittington (2006), offer a possible reconciliation of the two concepts. (Required Reading: Topic7 ppt, T.van Ziji and G.Whittington(2006)) Q3: Describe Barth (1994), as a major example of the ??new empiricism?? in accounting theory, and critically evaluate its potential contribution to policy-making. (Required Reading: Topic8 ppt, M.Barth(1994)) Q4: Review and critically evaluate the debate during the past decade in the US on principles-based accounting standards, including the role that International Financial Reporting Standards have played and might play in future in the US. (Required Reading: Topic9 ppt, AAA Financial Accounting Standards Committee(2003)