In first part of the assignments, I have narrowly defined the term accounting profit, forming a technical discussion on the basic accruals concept and the literal difference between accounting profit and true profit. This was portrayed by Hines (1988) as simply ‘measuring the reality’ without questioning who created the reality. Throughout this module, I have developed awareness on the level of sovereignty held by the standards-setters who determine how accounting profit is calculated. Instead of focusing on accrual assumptions, this essay will examine the formulation and implementation of the Conceptual Framework as a whole. The idea of subjectivity in the adoption of accounting policies has also been extended to professional judgements of the regulators. Besides, accounting theories will be applied to shape a contextualised evaluation. For instance, through Critical Theory I begin to question the ‘truth’ initially imparted on me: how reliable is profit figure in financial statement? Two levels of compliance are involved in answering this question, namely compliance between regulators and ethical codes in standards-setting, and between managers and accounting standards. Central to the following discourse would be the money measurement assumption where accounting profit precludes non-monetary elements such as opportunity costs to ensure consistency with part one of the assignments. Reliability of accounting profit – Self-regulation via ethical codes Before being considered a measure of the true profit, reliability of profit figures shall be assessed. As highlighted above, regulators are powerful in a way that profit is ‘the outcome of applying particular accounting rules and conventions … when these rules change, the same series o... ... middle of paper ... ...urvey of ethical behavior in the accounting profession. Journal of Accounting Research, 9 (2), pp. 287-306. Olusegun Wallace, R. 1996. The Development of Accounting Research in the UK. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 218-254. Parker, L. D. 1955. Practitioner perspectives on personal conduct. In: Cooke, T. and Nobes, C. eds. 1997. The Development of Accounting in an International Context. London: Routledge, pp. 68-89. Rodgers, P. 2007. International accounting standards. Oxford: CIMA. T.A., L. 1996. Richard Brown, Chartered accountant and Christian gentleman. In: Lee, T. eds. 1996. Shaping the Accountancy Profession: The Story of Three Scottish Pioneers. New York, Garland: pp. 153-221. Wagner, J. W. 2001. Defining Objectivity in Accounting. The Accounting Review July, pp. 599-605.
Wolk, H., Dodd, J., & Tearney, M. (2003). Accounting Theory: Conceptual Issues in a Political and Economic Environment (6th edition ed.). South-Western College Pub.
Accounting is considered to be a Social and institutional practice, one which is constitutive and intrinsic to social relations (Hopwood, 1994, pg1). In case of (MA), internal users like managers are provided with (MA) information (Seal, 2009, pg4). This information focuses on both human performance and product services costs. It also gives the responsibility to managers to take measures according to the planning, directing and motivating and controlling of the business (Young, 2003, chapter5). Modern managerially-run enterprises was first established by Chandler in the United States between ‘1830 to 1860’(Chandler, 1977, pg3).It makes possible the world of oligopolies, which brings imperfect competition and misallocation of resources. It is...
Towards the end of the 20th century it became apparent that companies were beginning to increasingly use an unconventional way of predicting their future performance in earnings. This alternative measure of anticipated earnings was fundamentally based on assumptions rather than historical evidence, which is why it was viewed as being unconventional when casting a business plan. Pro-forma earnings, is scrutinized as being deceptive because the calculations used to come up with the figures weren't a true reflection of the businesses profitability. The earnings reported by companies to no comply to the strict guidelines of the GAAP and companies can manipulate their data or measure to and report earning that are hypothetical (Epstein 2009; James
I strive to embody integrity in everything that I strive to do. This means that each and every one of my actions must encompass and demonstrate the values I possess, no matter what the context of the situation. Additionally adhere to high moral principles and professional standards put forth by the American Institute of Certified Public Accountants. Secondly, I believe that it is important to be honest and respectful. I desire to express truth in every written and spoken word. Presenting information in a fair and impartial way when it comes to performing accounting duties is necessary in a profession that serves the public interest. I believe that being respectful means showing consideration and thoughtfulness in my relationships with my fellow those that I come into contact with. This goes hand in hand in treating everyone from fami...
...ublic Accountant. (2007). Bloomsbury Business Library - Business & Management Dictionary, 1453. Taken November 12, 2013, from http://ehis.ebscohost.com.lib.kaplan.edu/eds/detail?sid=49627df8-45b3-4a2a-a8cd-004e495dfb58%40sessionmgr10&vid=10&hid=107&bdata=JnNpdGU9ZWRzLWxpdmU%3d#db=bth&AN=26739296
Turner, Robert M. "Ethics and Professionalism: The CPA in Industry." The CPA Journal (1999). Retrieved on 18 September 2006 .
Mintz, S. M., & Morris, R. E. (2011). Ethical obligations and decision making in accounting. (2nd ed.). New York, NY: McGraw-Hill/Irwin.
Previously, organisations were using historical cost accounting ,which indicates the value of assets and liabilities at the date or acquisition. But as we discussed before it was not accurate data or one can’t find accurate financial statements on the basis of historical cost. After May 12, 2011 IFRS introduce a fair value measurement (IFRS 13). Which was indicate fair value. Because of this organisation can get accurate numbers in their financial statement.
The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
So for the purpose of this paper let's take a step back and look at the main reasons for why financial reporting practices still differ across most countries today. Since the 14th century when the double-entry accounting system bookkeeping was developed by in Northern Italy and used by Venetian merchants. The two different accounting methods, Anglo-Saxon and Continental-European have always managed to co-exist separately. However, due to the rise of the emerging markets, international harmonization of accounting standards is an important topic in this globalizing economy. Standard setters, company managers, and researchers alike are interested in the evolution of global standards. All current indications are that harmonization will be a ready, it is just a matter of how fast it will happen, who will set the global...
When faced with major problems and dilemmas in management accounting and financial management, practitioners look to the 'standards of ethical conduct' for practitioners of management accounting and financial management. While looking at ethical standards one has to look at four different areas they are competence, confidentiality, integrity, and objectivity. These four areas are the backbone of what management accounting and financial management are made. When faced with a possible violation within this backbone of the ethical standards one should ask themselves two questions, "Will my actions be fair and just to all parties affected?" and "Would I be pleased to have my closest friends learn of my actions?" (Weygandt D-1) practitioners of management accounting and financial management have an obligation to the public, organization, and themselves to adhere by the ethical standards both domestically and internationally.
At a glance, accounting might appear as a repetitive cycle of preparing and examining financial statements. However, a brief exposure to accounting has taught me how chaotic it can be for accountants. An accountant captures and represents the information of businesses. By reviewing financial operations, an accountant helps a business run efficiently. This profession can be intellectually stimulating and rewarding. After learning about accounting, I cannot help but be interested and desire to work toward a degree in accountancy. In my studies, I have learned accountants require a plethora of qualities to be successful. And to mature from a student to a professional, I must resolve to strengthen my weaknesses. There is much I must learn and achieve, but a degree in accounting is well worth the time spent.
Zare, I, Nekounam, J and Gerami, A 2012 , ‘Review Reliability for Value of Intangible Assets in Financial Statements’, Vol. 2, no. 3, pp. 7115 - 7119 , Journal of Basic and Applied Scientific Research < http://www.textroad.com/pdf/JBASR/J.%20Basic.%20Appl.%20Sci.%20Res.,%202%287%297115-7120,%202012.pdf>
The accuracy and reliability of analysis depends on reliability of figures derived from financial statement.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development