...Accounting Theory is designed to provide students with an understanding of historical and contemporary issues that influence the development of accounting thought. As it has developed accounting theory has three main approaches, the descriptive or positive, the normative and the critical viewpoints. Based on these theoretical perspectives this unit will examine current issues such as social and environmental accountability, the ethical and global dimensions of accounting and the political context within which accounting policy decisions are made. The unit will take a research focus in that the work of researchers in accounting will be discussed. Accounting Theory is designed to provide students with an understanding of historical and contemporary issues that influence the development of accounting thought. As it has developed accounting theory has three main approaches, the descriptive or positive, the normative and the critical viewpoints. Based on these theoretical perspectives this unit will examine current issues such as social and environmental accountability, the ethical and global dimensions of accounting and the political context within which accounting policy decisions are made. The unit will take a research focus in that the work of researchers in accounting will be discussed. Accounting Theory is designed to provide students with an understanding of historical and contemporary issues that influence the development of accounting thought. As it has developed accounting...
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...ideals patched together into a theory of management accounting, nevertheless, it should be recognised that it provides a wealth of knowledge into contemporary management accounting practices. Contingency theory provides enhanced information to the individual which ultimately improves decision making and assists in achieving organisational objectives (Hamas and Lääts, 2002, p. 379). This theory has invaluably provided research evidence that are attributable to contemporary management accounting knowledge and designs. It has provided a profound method to adjust to ever changing external environments and the need for changes in internal factors (Otley, 1980, p. 413). Strengths of contingency theory style research Challenging the criticisms of contingency theory for being fragmentary and contradictory due to its methodological limitations, it is the failure of critiques in realising the many different forms of management accounting designs under the contingency approach and the relationships between those design which have perpetuated this idea (Gerdin and Greves, 2004, p.303). Attention should be shifted to the concepts under which contingency theory has been applied. Contingency theory in its simplest form highlights that an organisation’s structure is conditional upon contextual factors such as environment, strategy and size. One of its key strengths is a congruence approach that it represents, whereby assuming context determines the structure of the organisation without...
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...Understanding management accounting techniques in the context of organizational change: as strategic business partners with a responsibility to improve operations, management accountants must identify techniques that support incremental change and h elp transform their firm. EXECUTIVE SUMMARY Driven by the need for organizational change, management accounting techniques have developed and proliferated at an unprecedented rate in the last few decades. Some critics, however, have charged that the changes are a "reinvention of the wheel" every few years. To put these issues in perspective, let's look at a framework created to illustrate the distinctive nature of these techniques in an organizational change context. The framework considers such factors as user resistance and organizational culture that can influence the applicability and implementation success of the techniques. After tracing the history of management accounting beginning in 1850, accounting scholar Robert S. Kaplan comments, "Despite considerable change in the nature of organizations and the dimensions of competition during the past 60 years, there has been little innovation in the design and implementation of cost accounting and management control systems." (1) All the practices employed by companies and described in management accounting textbooks had apparently been developed by 1925, despite major changes in the nature and operations of organizations. To develop the field of managerial accounting, Kaplan and others...
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...Introduction: The primary purpose of financial and accounting management is to organize, plan, control and direct the financial and accounting activities, but to ensure that every stakeholder is adequately served. The effectiveness of financial and accounting management, therefore purely depends on the policies, regulations and frameworks that are designed and being evolved from time to time. According to Gray, Owen and Adams (1996) financial management is the core business discipline which is meant to ensure that financial resources are deployed in the most effective manner, within the best interest of every group of stakeholder. Moreover, the importance the financial management also increases in current business context because of the fact that economic and financial contexts have become uncertain and unpredictable in every region across the world. At the other end, financial management also supports the business activities and operations which include investment decision making, pricing, financial reporting as well as to meet the legal and regulatory obligations. This report also focuses on the different aspects of financial analysis and management to reflect its validity, reliability and usability in practice. The purpose of this report is to understand and examine the different aspects of financial management, which will be helpful to understand the effectiveness of financial management and its different aspects. In order to achieve the report’s objectives, below paper...
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...|PERSONAL INFORMATION |Renata Hlupić | | | |[pic] |4, Zelena Magistrala, Zagreb, 10000, Croatia | | |[pic] 098/9371-953 | | | hlupic.renata@gmail.com | | |Sex Female | Date of birth 25/07/1983 | Nationality Croatian | |JOB APPLIED FOR |REPLACE WITH PREFERRED JOB / JOB APPLIED FOR / STUDIES APPLIED FOR / POSITION (DELETE NON RELEVANT HEADINGS IN | |POSITION |LEFT COLUMN) | |PREFERRED JOB | | |STUDIES APPLIED FOR | ...
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...Culture-Specific Forensic Accounting Conceptual Framework: A skills Set Theoretical Analysis Abstract : Forensic accounting, given its peculiar investigative stance, requires a specific skills set on the part of the forensic accountant, that integrates accounting, auditing and investigative skills. The Jordanian Anti-Corruption Commission’s (JACC) struggle to investigate Maward’s, a Jordanian state-own company, suspected corruption has raised serious concerns regarding the weak state of forensic accounting in Jordan, and the need for its adaptation to suit the country’s peculiar context, to successfully institutionalize at the wider societal level and benefit the state in its aim for ensuring efficient utilization of the scarce resources at its disposal. This study is an attempt to deduce a country-specific conceptual framework for forensic accounting, which can be replicated, with suitable adaptations, to other countries with similar cultural backgrounds, and put forth some theory-supported suggestions to help guide future research in the area. Keywords: forensic accounting, conceptual framework, institutional theory, foucault Introduction: The rise in the white collar crimes, where evidences are comparatively moreobscure and difficult to detect (Gottschalk, 2011), has necessitated equipping of auditors with forensic skills, particularly over the recent years (DiGabriele, 2009a; Carnes & Gierlasinski, 2001). In the aftermath of several accounting scandals such as...
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...Qualitative characteristics in accounting disclosures: a desirability trade-off Malcolm Smith Associate Professor of Accounting, School of Economics and Commerce, Murdoch University, Perth, Australia A number of studies in the USA, UK, Australia and Canada have addressed the evaluation of the usefulness of accounting information and sought to identify criteria for assessing the quality and utility of financial reports (e.g. Institute of Chartered Accountants in England and Wales (1975), Financial Accounting Standards Board (1980), Institute of Chartered Accountants in Scotland (1988), Accounting Standards Board (1991)). The qualitative characteristics viewed as desirable for the fulfilment of the fundamental objective of communicating decision-useful measurement recognize that all of these characteristics are not simultaneously achievable and that some trade-off is necessary. Examines the nature of this conflict of objectives and attempts to quantify the extent of the conflict for different user groups. Introduction Since the late 1960s research efforts regarding a conceptual framework have been commissioned in response to mounting public and professional pressure with regard to the nature of corporate reporting and deficiencies in the accounting standard setting process. Peasnell[1, p. 254] with respect to the Financial Accounting Standards Board (FASB) conceptual framework observes: “it perceives a need to show that its heart and mind are in the right place: to demonstrate...
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...|FIN3024 Accounting Information Systems | |Topic |Introduction to Accounting Information Systems | |Week |1 | Chapter Overview This chapter explains some fundamentals of accounting information systems and the historical development of it until the need to have one become so essential to meet the competitive environment. In addition, it discusses the role of systems within the organizational setting as well as accountants’ roles in using, designing and auditing the accounting information systems. Learning Objectives ▪ Explain the historical development of corporate accounting information systems ▪ Explain the nature, context and purpose of corporate accounting information systems. ▪ Explain the business information support systems. ▪ Examine the role of accountants and information systems. Learning Outcomes: On successful completion of this topic students should be able to: Describe the major influences changing the nature and context of accounting information systems; Demonstrate an understanding of business information support systems. Illustrate an awareness of the role of accountants, accounting and finance...
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...1. Introduction Accounting standards establish the rules for accounting in a country and prescribe what should be reported in a company’s financial statements in that territory. Their purpose is to ensure that consistent approaches of accounting are adopted nationally. They minimize the risk of material misstatement in accounts and help investors make decisions by ensuring they can get comparable information. Accounting standards, as laid down by a country’s law, are applicable to all companies registered within its territory. But in order to ensure the success, the regulating process must be established. In Bangladesh BFRS and BAS are used as the accounting and reporting standards for the companies. Companies are obliged to follow those standards and laws and some are free from such restrictions. In this assignment, a theoretical analysis has been made regarding the accounting regulation and standard setting process in Bangladesh. 2. Accounting Regulation in Bangladesh All the companies in Bangladesh (both public limited companies and private limited companies) are regulated by The Companies Act of 1994 that provides the basic requirements for the companies. It includes the requirements about financial reporting and accounting practices. But most importantly, this act is silent about either Bangladesh Accounting Standards (BAS) or International Accounting Standards (IAS),. description about the laws and regulations for different types of entities in Bangladesh has been...
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...CHAPTER 2 ENRIRONMENTAL INFLUENCE ON ACCOUNTING DEVELOPMENT 1 2.1 Introduction In international accounting research, environmental influence is the key to understanding one country’s accounting system. "To a large extent, accounting is a product of its environment. That is, it is shaped by, reflects, and reinforces particular characteristics unique to its national environment" (Radebaugh and Gray 1997). From the late 1960s, researchers in international accounting have tried to categorize countries according to a series of criteria, which have been developed on a deductive or conductive basis. These criteria tried to explain the reasons for accounting differences between countries; they aimed to describe and compare different systems with each other in an efficient way. There are several advantages to categorize and analyze the differences among countries: First, it promotes improved understanding of the complex realities of accounting practices, as well as the factors that shape a country’s accounting regulations; Second, it provides useful information for solving some of the important accounting problems that exist in the world. For example, it can help policymakers assess the prospects and problems of international harmonization; Third, it can assist in the training of accountants and auditors who operate internationally; And finally, it can enable a developing country to better understand the available and appropriate types of financial...
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...Accounting, Organizations and Society 28 (2003) 127–168 www.elsevier.com/locate/aos Management control systems design within its organizational context: findings from contingency-based research and directions for the future Robert H. Chenhall Department of Accounting and Finance, Monash University, Clayton, Victoria 3168, Australia Abstract Contingency-based research has a long tradition in the study of management control systems (MCS). Researchers have attempted to explain the effectiveness of MCS by examining designs that best suit the nature of the environment, technology, size, structure, strategy and national culture. In recent years, contingency-based research has maintained its popularity with studies including these variables but redefining them in contemporary terms. This paper provides a critical review of findings from contingency-based studies over the past 20 years, deriving a series of propositions relating MCS to organizational context. The paper examines issues related to the purpose of MCS, the elements of MCS, the meaning and measurement of contextual variables, and issues concerning theory development. A final section considers the possibility that contingency-based ideas could encompass insights from a variety of theories to help understand MCS within its organizational context. # 2002 Elsevier Science Ltd. All rights reserved. 1. Introduction The three purposes of this paper are to provide a review of empirical, contingency-based research as it has developed...
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...2. A Theoretical Research Framework This chapter presents a brief overview of the most relevant theoretical concepts of management control, accounting information systems, performance budgets and the roles of budgets. These general accounting concepts, applicable in both the private and public sector, are used to compose a research framework for analyzing the role of budgeted performance measures in Dutch local government. Organizational and management control Control, next to strategy formulation and objective setting, is one of the critical management processes (Merchant, 1998; Merchant and Van der Stede, 2003). The term “organizational control” has no single generally accepted definition. Literature presents various definitions, describing organizational control as a process (of setting a standard, observing what is happening, comparison of observation and standard, and if necessary, behavior altering communication), or by its main goal (e.g. assuring implementation of strategies). Anthony (1988) has provided a general accepted structure for organizational control. His traditional framework distinguishes three separate and distinct processes; being strategy formulation, management control, and task control. Within this concept, task control and strategy formulation form the boundaries of the management control process. Strategy formulation is the process of deciding on the goals of the organization and the strategies for attaining these goals. Task control is the process...
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...if we are interested in cash flows we will usually forecast these using the indirect method rather than the direct method because the basic building blocks of profitability, growth, investment and financing are more readily framed in terms of accrual based accounting and moreover corporate tax is profit based – ultimately we are interested in the prospects for profitability. We should use at least two methods of valuation to value a company and in any one method look to undertake some sensitivity analysis or scenario analysis. The forecasting should be comprehensive and be conditional upon the corporate and business strategy, the accounting analysis and the financial analysis. Importantly, the forecasts should impound the evidence on key financial variables such as sales growth, EPS over time and ROE over time.EVIDENCE ON SALES GROWTH AND EARNINGS We begin with some evidence which is useful in the context of a forecast. But do remember this is what occurs on average. If the forecast is largely at variance from the evidence then this will need explaining within the context of the business strategy or the accounting. In addition if strategy or accounting changes we need to assess the consequences for the forecast. Accounting is constantly changing so this needs to be incorporated into the condensed statements. Sometimes it will be largely insignificant but at other times – pensions – it is significant. Most of the changes will reduce the bottom line profit regardless of any other...
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...UNIVERSITY Use of Theses This copy is the property of the Edith Cowan University. However the literary rights of the author must also be respected. If any passage from this thesis is quoted or closely paraphrased in a paper or written work prepared by the user, the source of the passage must be acknowledged in the work. If the use desires to publish a paper or written work containing passages copied or closely paraphrased from this thesis, which passages would in total constitute an infringing copy for the purposes of the Copyright Act, he or she must first obtain the written permission of the author to do so. USERS AND ACCOUNTING INFORMATION PREFERENCES OF GOVERNMENT DEPARTMENT FINANCIAL REPORTS by Helen R Mignot B (Bus) A thesis submitted in partial fulfilment of the requirements for the award of Master of Business (Accounting) at the Faculty of Business Edith Cowan University Date of Submission: 05 February 1996 ACKNOWLEDGMENTS AND DEDICATION I wish to thank all those who provided...
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...presents career opportunities for auditors who encompasses the idea of globalized change. The convergence of accounting standards is changing the attitudes of CPAs and CFOs as far as internal accounting is concerned and how the quality of the International Accounting Standards will affect it and the efforts made toward converging IFRS and the GAAP standards. Create an argument for or against the IFRS and GAAP convergence process versus a pure adoption of IFRS in the context of impact to the public accounting profession. With Business and finance globalization, almost a hundred countries have adopted IFRS. Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed with IFRS as announced by the IASB and include a statement acknowledging such conformity in audit reports. Motivations for convergence include the belief that it will result in increased comparability between financial statements, which will benefit a variety of stakeholders. One would need to weigh the benefits of a one time cost for transitioning fee, the ability to compare reports, and the benefit of using a single reporting standard for businesses. Assess the cost impact for or against IFRS and GAAP convergence process versus a pure adoption of IFRS in the context of impact to the public accounting profession. Publicly held and companies that are doing business internationally will be mostly affected...
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