Deegan Topics : The financial reporting environment and Regulation of financial accounting
QUESTION 1
Do you believe that the media portray accounting numbers, such as profits, as some sort of ‘hard' and objective performance indicator? Why do you think they might do this, and, if they do, what are some of the implications that might arise as a result of this approach?
QUESTION 2
Briefly outline some arguments in favour of regulating the practice of financial accounting.
QUESTION 3
Why might accountants be construed as powerful individuals?
QUESTION 4
Identify and evaluate the key negative economic and social consequences that might potentially arise following the introduction of AASB 138 Intangible Assets from 1 January 2005.
QUESTION 5
Accounting headline 3.9 (SEE END OF WORKSHOP 2 QUESTIONS) discusses how European banks were able to lobby the European Union (EU) so as to be regulated by a ‘watered down' version of the accounting standard IAS 39. Explain whether the decision of the EU to embrace a ‘watered down' version of the standard is consistent with a ‘public interest theory of regulation perspective', or whether it can be explained by an alternative theoretical perspective (which you should attempt to identify).