FINANCIAL ACCOUNTING ASSIGNMENT -
Part A: Choices are:
1. Historical cost
2. Social Accounting
1. HISTORICAL COST
LEARNING OBJECTIVES -
- The historical cost model and its application
- The reasons for the dominance of the historical cost model, and the arguments against the model
- Historical cost valuation issues
- Criticisms of historical cost accounting.
QUESTIONS -
1. What do you understand by 'stewardship' in the historical cost model?
2. Why is profit important to the model?
3. How is matching and the concept of costs attaching used in the determination of profit?
4. Why is net worth not an important concept under the historical cost model?
5. What concept of capital is used in historical cost accounting?
6. Although the historical cost model is a cost-based model, there are some valuation issues.
7. Give the main reasons for the dominance of the historical cost model over others that have been proposed.
8. There are many criticisms of historical cost accounting. Which do you think are the most important? Why?
9. Discuss the proposition that 'historical costs are less subject to manipulation than other cost or valuation alternatives'.
2. SOCIAL ACCOUNTING
LEARNING OBJECTIVES -
- Social and environmental reporting issues
- Issues causing business entities to give greater consideration to social and environmental issues
- A theoretical model that outlines the development of corporate concern for social and environmental issues
- Social and environmental reporting practices
- Accounting and reporting issues that are problematic when considering social and environmental issues.
QUESTIONS -
1. Describe corporate social responsibility.
2. Give examples of the environmental issues affecting accounting.
3. What is meant by social reporting?
4. What are the types of social accounting?
5. Explain the factors that have led to increased corporate accountability.
6. What role has government had in regulating environmental issues?
7. Do many companies comply with social reporting?
Part B: The IFRS Framework discusses 2 concepts of capital and capital maintenance: financial and physical.
Part C: AASB139 is to be replaced by AASB9 as from 1st January 2018. I am a little confused with understanding Financial Instruments and this new standard. Please explain it to me.
Assignment Files -
https://www.dropbox.com/s/4eiqds9d96qpp09/FINANCIAL%20ACCOUNTING%20ASSIGNMENT.rar?dl=0