Subject : Accounting Theory

Case 1. (15%) Corporate Governance has been highlighted as an important factors in alleviating the risk of corporate failure. Analyze which aspects of corporate governance which likely to guard against corporate failure. Case 2 (1 5%) The global financial crisis of 2008 increased uncertainty over whether capital markets are efficient. As a consequence, behavioral finance has become a topic of considerable interest. Contemporary issues reviews the anomaly of black swan effects in relation to investor behavior. Questions: 1. What is Black Swan event? 2. How do black swan events illustrate the limits of capital market theory? 3. Why was the global financial crisis labelled a black swan event? Case 3 (15%) Examine the 2019 annual report of listed company of your choice in Bursa Efek Indonesia. Review the corporate governance statement and evaluate how successful you think the board structure is likely to be in limiting earnings management. In particular, consider the board size, independence and committees in place. Prepare a report of your findings. Case 4a (5%) What is sustainability accounting and why has the practice of sustainability reporting (and assurance) varied around the world? How does sustainability reporting relate to social accounting? Case 4b (15%) Natural resources like land, water, air, energy, etc. are the main inputs of any business process. The rapid development in industries are causing more environmental issues like pollution, carbon emission, green house effects, water and air contamination, land and soil contamination, loss of biodiversity etc. So, accountability towards environment has become one of the most essential areas of social responsibility. Our traditional accounting system is limited to record and report financial information of the business process for internal and external stakeholders. This limitation can be removed by implementing Environmental Accounting and Reporting over the traditional accounting system, but requires good knowledge, training and standard guideline. Based on explanation above, please give your arguments with supported by some theoretical framework related with EAR from different scholars/researcher. How its implementation in Indonesia? Why? Case 5 (15%) Describe arguments that pros and cons for the use of FAIR VALUE and the use of MODIFIED

HISTORICAL COST (Use the perspective of Conceptual Framework for Financial Reporting) Case 6a (5%) Describe the benefits of Global Adoption of International Financial Reporting Standards (IFRS) Case 6b (15%) Access the financial statements form the most recent annual report of a foreign company and a domestic company with which you are familiar to complete these instructions as follow (use companies to compare within the same industry). Instructions: a. Determine the accounting principles (US GAAP) and domestic companies use to prepare financial statements. b. Determine whether the foreign and domestic companies provide a set of financial statements that includes the same components (e.g., consolidated balance sheet, consolidated income statements and consolidated cash flows statements) c. List five format differences in the companies income statements. d. List five format differences in the companies balance sheets (statements of financial position) e. Note any terminology differences that exist between the two companies, income statements and balance sheet/statements of financial position. f. Assess whether the scope and content of the information provided in the notes to the financial statements is similar between the two companies. g. Compare the overall presentation of the financial statements and notes to the financial statements between the two companies.