7101AFE Lecture 3 Workshop Questions PDF

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7101AFE: Lecture 3 (Topic 3) Workshop Questions

1. Identify some factors that explain why different countries use different systems of accounting. Around the world, the fact that countries vary in term of legal system, tax system, level of education, and so on, can lead to the different systems of accounting. The reasons for international accounting differences include: • Underlying laws and political systems • Tax systems • Level of education • Level of economic development • Nature of business ownership and financing system • Colonial inheritance • Taxation • Culture • History • Language • Religion 2. Does the adoption of IFRS by different countries necessarily mean that accounting practices they adopt will be consistent and comparable internationally? Different countries will have different legal system, tax systems and other underlying characteristics that lead to the difference in accounting practices. IFRS is just a rule book so the way people interpret and implement it is affected by other factors. Although countries adopt IFRS, accounting practices won’t be consistent and comparable internationally because:  Differences in taxation systems  Differences in economic and political influences on financial reporting  Modifications made to IFRS at a national level  Differences in implementation, monitoring and enforcement 3. After considering the Hosftede-Gray model, briefly explain the hypothesised link between society values, accounting values, and accounting practice. Hosftede 's cultural dimensions expose us to various issues: how a country is different from another? How people relate themselves to another in the society? Hosftede pointed out 5 underlying societal dimensions, including: – Individualism versus Collectivism – Large versus Small Power Distance – Strong versus Weak Uncertainty Avoidance – Masculinity versus Femininity – Long-term versus short-term orientation

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As an accountant is a part of the society, the value systems of accountants are derived from related societal values. The value of accounting subculture will in turn impact on the development of the respective accounting systems at a national level The way an accounting practice act will be influenced by accounting values. For example, if the society is optimistic, the accountant tends to be optimistic. Therefore, they would apply optimism and positive point of view in estimation and judgement in financial reporting. Do you think it is realistic to expect that there will eventually be an internationally uniform set of accounting standards? What factors would work for or against achieving this aim? - IASB seeks to formulate, publish accounting standards and work on the improvement & standardisation of accounting standards and procedures. However, it is hard to achieve an internationally uniform set of accounting standards for numerous reasons. - Factors for achieving this aim  International trade  Globalisation and communication Lots of countries don’t have to develop its accounting system, accounting standards, or stock market because of IFRS’s adoption. - Factors against achieving this aim  Differences in: tax system, legal system, level of education, and so on  Modifications made to IFRS at a national level  Differences in implementation, monitoring and enforcement Identify and explain some of the benefits that arise from IFRS adoption. - Improved comparability of financial statements across countries - Decrease in cost of capital in IFRS adopting countries because international investors are better able to understand the financial performance and position of local companies. Therefore, it helps to facilitate greater capital inflows, which reduces cost of capital - Improved market liquidity/positive market reaction because of greater capital inflows. - Increased foreign direct investment - Improved analyst forecasting - IFRS adoption reduces perception of corruption in developing countries Does the standardisation of accounting standards on a global basis necessarily equate with a standardisation of accounting practice? No. Because of some reasons: - Differences in: tax system, legal system, level of education, and so on - Modifications made to IFRS at a national level - Differences in implementation, monitoring and enforcement Thus, we never achieve standardisation but we can improve comparability to some extent, depending on the rate it becomes globally.

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7101AFE Financial Accounting Theory and Practice 7101AFE_3201_NA Assessment Review Test Submission: 7101AFE Mid-Trimester Exam T1 2020

  7101AFE Financial Accounting Theory and Practice (7101AFE_3201_NA)          

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Review Test Submission: 7101AFE MidTrimester Exam T1 2020 User Course Test Started Submitted Status Attempt Score Time Elapsed

Hai Anh Do 7101AFE Financial Accounting Theory and Practice 7101AFE Mid-Trimester Exam T1 2020 24/04/20 10:02 AM 24/04/20 11:32 AM Needs Marking Mark not available. 1 hour, 30 minutes out of 1 hour and 40 minutes

 Question 1

1 out of 1 points

In evaluating theories of accounting, which of the following is not true?

 Question 2 An inductive theory or argument:

1 out of 1 points

Org

 Question 3

0 out of 1 points

Which of the following statements best explains the role of logic in a theoretical a

 Question 4

0 out of 1 points

Which of the following is not assumed in Positive Accounting Theory?

 Question 5

1 out of 1 points

Statement 1: All the fixed assets in the company are more than 10 years old. Statement 2: Some of the fixed assets in the company are plant and machinery. Assuming that Statement 1 and 2 are true, which of the following is correct based on logical deduction?

 Question 6

1 out of 1 points

Which of the following is not an example of normative accounting theory or research?

 Question 7

1 out of 1 points

Which of the following statements is correct about generalising the findings of a study to the general population, based on particular samples?

 Question 8

1 out of 1 points

Which of the following is true about theories in general?

 Question 9

1 out of 1 points

Normative accounting theories and research seek to:

.

 Question 10

0 out of 1 points

One criticism of Positive Accounting Theory is that it tells us nothing about:

 Question 11

Needs Marking

Why would adoption of the International Financial Reporting Standards (IFRS) not lead to uniformity of accounting practices? Briefly explain.

 Question 12

Needs Marking

Briefly explain two arguments against regulation of financial reporting.

 Question 13

1 out of 1 points

Institutional Theory suggests which of the following?

 Question 14 Which of the following statement is false?

1 out of 1 points

 Question 15

1 out of 1 points

The difference between 'classical' and 'bourgeois' political economy theory is that:

 Question 16

1 out of 1 points

Empirical findings consistent with Legitimacy Theory would be increased disclosure of:

 Question 17

1 out of 1 points

The 'legitimacy gap' of a corporation will narrow when:

 Question 18

1 out of 1 points

An organisation disclosing social and environmental information because a competitor was gaining a competitive advantage by doing so, is an example of:

 Question 19

1 out of 1 points

The moral perspective of Stakeholder Theory holds that all stakeholders have the right to be treated fairly by an organisation:

 Question 20

1 out of 1 points

Which of the following is not a means by which an organisation may attempt to legitimise its activities?

 Question 21

1 out of 1 points

Which of the following is not necessarily a benefit of harmonisation and convergence?

 Question 22

0 out of 1 points

Which of the following is not considered to be an obstacle in the standardisation of international accounting?

 Question 23

1 out of 1 points

From 2005, Australia has adopted the IASB standards for:

 Question 24

1 out of 1 points

Which of the following of Gray's accounting sub-culture values describes a preference for substance over legal form regulation?

 Question 25

0 out of 1 points

Which of the following is not an objective of the IASB?

 Question 26

0 out of 1 points

Which researcher argued that the value systems of accountants are derived from, and related to, societal values, and that these social values are also held by accountants at a sub-culture level, and therefore will impact on the development of national accounting systems over time?

 Question 27

0 out of 1 points

Which of the following is an obstacle that is not unique to international harmonisation of accounting standards?

 Question 28

1 out of 1 points

Which of the following does not equate with Gray's hypothesised linkages between accounting values and accounting practice?

 Question 29

1 out of 1 points

The type of business ownership and financing system, and the taxation system, influence the nature of accounting practice in different countries. Which of the following describes the institutional influence more conducive to the increasing scale of globalised business and development of international accounting standards?

 Question 30

0 out of 1 points

Which of the following is true of Hofstede's (1980) theory?

 Question 31

1 out of 1 points

Which of the following is not true for the International Accounting Standards Board (IASB)?

 Question 32

1 out of 1 points

Which of the following statements is true?

 Question 33

1 out of 1 points

Statement 1: All the fixed assets in the company are more than 10 years old. Statement 2: Some of the fixed assets in the company are plant and

machinery. Assuming that Statement 1 and 2 are true, which of the following is correct based on logical deduction?

 Question 34

1 out of 1 points

Which of the following is not a rationale for regulating financial accounting information?

 Question 35

1 out of 1 points

Which of the following statements is true about the regulation of accounting practice in its early period of development?

 Question 36

1 out of 1 points

They are subject to professional judgment.

 Question 37

1 out of 1 points

Which of the following expectations regarding the economic and social consequences of accounting standards on affected parties is not in line with statements by standards-setters?

 Question 38

1 out of 1 points

Which of the following theories asserts that regulators are not initially put in place to protect the public interest, and are driven by selfinterest?

 Question 39

0 out of 1 points

Which of the following is a reason why accounting, and accountants, can be considered very powerful?

 Question 40

1 out of 1 points

Which of the following arguments supports the view that regulation is not necessary, particularly to the extent that it currently exists?

 Question 41

1 out of 1 points

Who has the overall responsibility for issuing accounting standards in Australia?

 Question 42

1 out of 1 points

Which of the following is not a characteristic of the Anglo-American model of financial accounting and its regulation? Friday, 24 April 2020 11:33:02 AM AEST OK

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