Answer both the following questions separately
1. Accounting Measurement Systems
Read the following article which is available on ProQuest, Google Scholar etc.
Laux, C and C. Leuz. 2009. The crisis of fair value accounting; making sense of the recent debate. Accounting, Organisations and Society Vol. 34, No. 6/7 p 826-834.
In answering the following questions, choose either property, plant and equipment or financial assets
a) With reference to the article discuss whether assets should be measured at historical cost or fair value.
b) With reference to Fiji, outline some limitations of the measurement approach which you supported in (a) above.
2. Positive Accounting Theory
The course text outlines three agency problems of equity and four problems of debt.
Design a research project to examine ONE of the agency problems of equity or debt. Your design should address the following aspects:
a) Research Objectives
b) Research Question
c) Hypothesis
d) Expected results, based on agency theory
e) Data Collection i.e. what data would you need to collect and would you obtain it?
You are not required to collect any data or perform any analysis. Refer to accounting journals for examples of research design.
Student Note
-The course textbook is Godfrey, J. A. Hodgson and S. Holmes et al. (2010) "Accounting Theory", 7th edition, Wiley.
-Assignment has 2 questions.
-Question 1 is based on the textbook chapter Accounting Measurement Systems and Question 2 is based on the textbook Chapter Positive Accounting Theory.
-Question 1 is also based on a article which is also attached. Use the article along with the chapter notes and also use articles from various other sources as well to support the answer.
-Question 2: use the chapter notes and other sources to support the answer.