Hi, I am Debbie.

I need the workshop 3 answers. The workshop question has 6 questions. Every answer at least 100 word. Please complete before 00:00.

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3101AFE Accounting Theory and Practice Workshop Questions for Workshops 1- 6: Semester 1 2016 WORKSHOP 1 - Semester 1 2016 Deegan Topic 1: Introduction to financial accounting theory QUESTION 1 - Question 1.2: If you developed a theory to explain how a person's cultural background influences how they prepare financial statements, would you have developed a positive theory or a normative theory? QUESTION 2 - Question 1.3: What is a conceptual framework, and would it be considered to be a positive or a normative theory of accounting? QUESTION 3 - Question 1.5: Why would it not be appropriate to reject a normative theory of accounting because its prescriptions could not be confirmed through empirical observation? QUESTION 4 - Question 1.8: What is the difference between developing a theory by induction and developing a theory by deduction? QUESTION 5 - Question 1.23: Can we ever claim to have finally 'proved' a theory? 1 WORKSHOP 2 - Semester 1 2016 Deegan Topics 2 and 3: The financial reporting environment and Regulation of financial accounting QUESTION 1 - Question 2.3: 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? Yes, I think that the media portrayed accounting profit digital aspects, because some of the "hard", objective performance indicators. Profit is the company's profitability during the final financial results of the company. Therefore, many existing and potential investors, creditors and other creditors will make decisions based on corporate profits. In addition, I think they do, because of different accounting methods and regulations in financial reporting (only some readers who have a reasonable knowledge of accounting, you can understand the truth) profit different data. Profit as a hard and objective performance indicators, the company may emphasize this information in order to help readers to take more attention to the important results. That is why they do and what implications are. QUESTION 2 - Question 2.6: Briefly outline some arguments in favour of regulating the practice of financial accounting. Regulation of financial accounting practice to progress more significant due to the fact that, on the practice of unethical issues are becoming more common. Fraud and scandal not only endanger corporate profits, but also threaten to the interests of shareholders, analysts, regulators and investors. It is also important that monitoring information to predict the financial situation of the organization's quality process. Reputation for quality and effectiveness based FASB (1991), the user assessment of the financial statements in accordance with the information. Moreover, the integrity of the information presented and the structure are taken into account, the concerted efforts of the whole financial reporting community. Finally, word of mouth and advocacy assistance to standardize the construction of financial accounting practices in terms of the trust obtained from third parties. With that said, the regulatory accounts regulated firm regularly publish the main source of improving transparency and audit data (Hetherington, 2001). In order to efficiently allocate resources among enterprises in the capital market, investors (public) have access to financial information and who helped prepare corporate accounting and audit reports trust (Stanga & Turpen, 1991). QUESTION 3 - Question 2.25: Why might accountants be construed as powerful individuals? 2 Accountants are the key management in an organization whose strengths are greatly depended upon by the organization. The major reasons that makes them considered powerful is that the output of their process often, are organizational profits or losses which greatly impact financial base of an organization. Organizations depends on them in critical financial decisions such as to invest or lend funds so as to grow financially. How to best minimize expenses and increase revenue while maintaining high quality provision of services and goods to their esteemed customers. In addition, when accountants emphasize some performance attributes like profits margins or losses they tend to offer legitimacy to organization which could not be the case. By doing so they source themselves power to drive and implement changes in organizations. QUESTION 4 - Question 3.22: 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 - Question 3.30: 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). The article points out, the EU accepted accounting principles IAS 39 and the European Union can be explained by many theories, so that through the "watered down" version of 3 the accounting standards IAS 39. For example, we can use the theory of public interest regulation. Public interest regulation in place for the benefit of society as a whole, rather than vested interests and on behalf of their business, rather than adjusting the benefit / politician's private interests of society. However, in the EU it may not be suitable for public interest theory. n another theory assumes economic interest group theory of regulation will be formed to protect specific economic interests. Groups often conflict with each other, where they will lobby the government to benefit the people and the cost of the regulatory body in place legislation / assumed by politicians motivated by selfinterest. We can assume that the EU Member States and business enterprises a selfinterest. Therefore, those who support a simplified version of the standard work of the European Union. 4 5 WORKSHOP 3 - Semester 1 2016 Deegan Topics 4 and 5: International accounting and The conceptual framework project QUESTION 1 - Question 4.4: Does the adoption of IFR by different countries necessarily mean that the accounting procedures and practices they adopt will be consistent and comparable internationally? QUESTION 2 - Question 4.19: It is often argued that the accounting standards of the FASB are rule-based, whereas the accounting standards issued by the IASB are principles-based. Rules-based standards by their nature can be quite complex, particularly if they seek to cover as many situations as possible. Do you think it would be easier to circumvent the requirements of rules-based or principlesbased accounting standards? QUESTION 3 - Question 4.22: Does the standardisation of accounting standards on a global basis necessarily equate with a standardisation in accounting practice? QUESTION 4 - Question 4.32: Ball (2006, p. 17) states: Under its constitution, the IASB is a standard setter and does not have an enforcement mechanism for its standards: it can cajole countries and companies to adopt IFRS in name, but it cannot require their enforcement in practice. It cannot penalise individual companies or countries that adopt its standards, but in which financial reporting practice is of low quality because managers, auditors and local regulators fail to fully implement the standards. Nor has it shown any interest in disallowing or even dissuading lowquality companies or countries from using its 'brand name'. Individual countries remain primarily regulators of their own financial markets. EU member countries included. That exposes IFRS to the risk of adoption in name only. (a) Why does the IASB not have any direct enforcement powers in relation to IFRS? (b) Evaluate Ball's comments and provide an argument as to whether you agree or disagree with his view. QUESTION 5: Australia and China are two countries from different cultural areas. Identify and compare each country's environmental, cultural and accounting values. QUESTION 6 - Topic 5: Question 6.10: The two main qualitative characteristics that financial information should possess have been identified as relevance and representational faithfulness. Is one more important than the other, or are they equally important? 6 WORKSHOP 4 - Semester 1 2016 Deegan Topic 6: Chapter 10: Reactions of capital markets to financial reporting QUESTION 1 - Question 10.3: If some research is undertaken that provides evidence that capital markets do not always behave in accordance with the Efficient Market Hypothesis, does this invalidate research that adopts an assumption that capital markets are efficient? QUESTION 2 - Question 10.16: Evidence shows that share prices might not fully react to financial accounting information immediately and that abnormal returns might persist for a period of time following the release of information (a case of 'post-announcement drift'). Does this indicate that securities markets are not efficient and that assumptions about market efficiency should be rejected? QUESTION 3 - Question 10.17: If an organisation's operations rely heavily on the specialised expertise of its management team, would you expect there to be a higher or a lower correspondence between the net assets recognised in the statement of financial position (balance sheet), and the total market value of the organisation's securities, relative to an organisation that relies more on tangible assets (for example, commonly used plant and machinery) to generate its income? QUESTION 4 - Question 10.18: Would you expect an earning announcement by one firm within an industry to impact on the share prices of other firms in the industry? Why or why not? QUESTION 5 - Question 10.21: Researchers such as Chambers and Sterling have made numerous claims that historical cost information is meaningless and useless. Are the results of capital markets research consistent with this perspective? QUESTION 6 - Question 10.23: Some recent capital markets research investigates whether accounting information reflects the valuations that have already been made by the market (as reflected in share prices). In a sense, it assumes that the market has it 'right' and that a 'good' accounting approach is one that provides accounting numbers that relate to, or confirm, the market prices/returns. If we assume that the market has it 'right', what exactly is the role of financial accounting? 7 8 WORKSHOP 5 - Semester 1 2016 Deegan Topics 8 and 9: Accounting for Corporate Social Responsibilities QUESTION 1: Explain the meaning of sustainability and outline why corporations might consider it in their business operations. QUESTION 2: What is a social contract and how does it relate to organisational legitimacy? QUESTION 3: Under the managerial perspective of Stakeholder Theory, when would we expect an organisation to meet the information demands of a particular stakeholder group? QUESTION 4: What is international integrated reporting and how does it differ from the current financial reporting system we have? QUESTION 5 - Question 9.9: What is an externality and why do accounting practices typically ignore externalities? QUESTION 6 - Question 9.37: If a major Australian mining company reports record profits, is this profit figure misleading if the same company has polluted various river systems and has emitted toxic substances into the air, and has not placed a cost on these externalities? 9 WORKSHOP 6 - Semester 1 2016 Topic 7: Positive accounting theory QUESTION 1 - Question 7.2: Early positive research investigated evidence of share price changes as a result of the disclosure of accounting information. However, such research did not explain why particular accounting methods were selected in the first place. How did Positive Accounting Theory fill this void? QUESTION 2 - Question 7.4: Explain the management bonus hypothesis and the debt hypothesis of Positive Accounting Theory. QUESTION 3 - Question 7.13: Organisations typically have a number of contractual arrangements with debtholders, with many covenants written to incorporate accounting numbers. (a) Why would an organisation agree to enter into such agreements with debtholders? (b) On average, do debtholders gain from the existence of such agreements? QUESTION 4 - Question 7.17: If senior managers within a company were rewarded by way of accounting-based bonus plans then would they, or the owners/shareholders (or both), prefer the use of conservative accounting methods? Explain the reasoning for your answer. QUESTION 5 - Question 7.19: Assume that Kahuna Company Ltd decides to undertake an upward revaluation of its noncurrent assets just prior to the end of the financial year, the effect being that the total assets of the company increases, as does the total shareholders' equity. (a) (b) Explain the decision of management to undertake an asset revaluation in terms of the debt hypothesis of Positive Accounting Theory. Explain the decision of management to undertake an asset revaluation in terms of the management compensation hypothesis of Positive Accounting Theory. QUESTION 6 - Question 7.27: Zhang (2008) argues that if a borrower adopts conservative accounting methods this will reduce the risk exposure of the lender and will lead to a reduced interest cost for the borrower. What is the basis of this argument? 10