Abstract This paper discusses all aspects of accountingtheory and the history of regulation in the accounting profession that has been implemented as a result of notable financial accounting scandals. It analyzes and synthesizes the normative and positive accountingtheories, beginning with the historical background of each theory and a discussion of the suggested changes and problem areas revealed in the debate. It also analyzes the Generally Accepted Accounting Principles (GAAP) in relation to the conceptual framework and concludes with recommendations toward an appropriate course of action.
Outline:
Introduction
Historical Development of Normative and Positive AccountingTheories Current GAAP Discussion
Positive AccountingTheory vs. Normative AccountingTheory Changes and Problems Revealed in the Debate
GAAP Analyzation and History in relation to Conceptual Framework
Recommendations for Course of Action
Conclusion
From the Paper "In the past few decades, accounting theory has slowly evolved; as a result, various research methodologies have been utilized to study the development of accounting theory. As accounting theory has developed, debates have emerged regarding the manner in which financial theory should be developed and applied in the accounting profession. This has been essentially a normative, philosophical exercise, imposing a view of how actuarial practice should progress (Thomas & Smith, 1997). In recent years, the differences in application between normative versus positive accounting theories have become the subject of much debate, raising the awareness of those involved in the accounting profession. The underlying basis of normative theory is that it assists in standardizing the practice and thus facilitates the teaching of practice in a more coherent manner. The underlying basis of positive theory is intellectual justification; models are derived from observed behavior."
Abstract This paper provides some research into "Positive AccountingTheory" and how it impacts on the economy. The paper begins with an explanation of the theory itself and then offers some statistics and findings regarding the consequences of its use by management.
Contents:
Introduction
Explaining the Theory Economic Cconsequences
The Development of Positive AccountingTheory How Positive AccountingTheory Operates
Mnagament Decisions
Watts and Zimmerman
Research and Findings
An Example of a PAT study
Conclusion
From the Paper "Positive Accounting Theory and the doctrine of economic consequences helps us to understand why different firms choose different accounting policies, why some managers may object to changes in these policies and why investors may react to the potential impact of an accounting policy change. Accounting policy choices have economic consequences for the various constituencies of financial statement users and though complicating the setting of accounting standards, the source of the pressures driving the process can be explained by the development of a positive theory of the determination of accounting standards."
Abstract This paper explains the influence of SEC on accountingtheory and principles from the inception of the SEC in 1934 until today. It would present the experiences and outcomes of accounting standards-setters who have, in many cases, been successful in establishing a national, uniform system of certification for public accountants.
Abstract This paper focuses on some basic accounting priniciples. It also discusses the relationship of the Security and Exchange Commission, the Financial Accounting Standards Board and the Public Company Accounting Oversight Board.
Abstract This paper gives a background of the purpose and history of the Financial Accounting Standard Board, or the FASB. The FASB was founded with the primary goal of devising the Generally Accepted Accounting Principles in United States. The paper also defines the roles of the various organizations that fall under the umbrella of the FASB, such as the SEC and the PCAOB. The paper focuses additionally of the role of ethics in accounting, especially in relation to the Standards creating by the FASB.
Explain the FASB, SEC and PCAOB
Discuss the Relationship among the FASB, SEC, and PCAOB
Explain Basic AccountingTheories, Assumptions, and Principles
Evaluate the Role of Ethics in Accounting
From the Paper "To cater to the basic objectives the financial statement is required to be relevant, to be reliable, being comparable as well as being consistent. So as to accomplish its basic objectives the GAAP is required to base on four hypotheses such as Economic Entity Assumption-that assumes the isolation of business from its owners or other businesses; Going Concern Assumption-that assumes the long term operation of business; Monetary Unit Assumption that assumes a stable currency as the unit of record; Periodicity Assumption that assumes the periodical record-ability of the business operations enabling comparison between present and past performances. "
This paper presents a plan for improving the balance sheet of Franktek Inc. in light of a renegotiated agreement it entered into with Conte Technologies.
1,125 words (approx. 4.5 pages), 4 sources, 2006, $ 44.95
Abstract In the case of Frantek, Inc., a manufacturer of microcomputer parts, and Conte Technologies, a buy of same, the issue is how to measure and recognize valuation of assets and liabilities in order to provide a proper accounting at year's end for Frantek, relevant to an amended agreement between Frantek and Conte for parts supplied by Frantek to Conte. This paper first lays out the basic facts of this case and discusses general accounting principles which will impact the path that Frantek takes and then presents a general recommendation concerning how Frantek ought to recognize revenues, valuate inventories, and valuate and classify liabilities. Issues of the Case Frantek agreed to provide 100,000 boards over a 12-month period to Conte at a stipulated price per board, with provision for penalties for failure to perform.
From the Paper In the case of Frantek, Inc., a manufacturer of microcomputer parts, and Conte Technologies, a buy of same, the issue is how to measure and recognize valuation of assets and liabilities in order to provide a proper accounting at year's end for Frantek, relevant to an amended agreement between Frantek and Conte for parts supplied by Frantek to Conte. After laying out the basic facts of the case and discussing general accounting principles which impact the path taken, a general recommendation will be made concerning how Frantek ought to recognize revenues, valuate inventories, and valuate and classify liabilities. Issues of the Case Frantek agreed to provide 100,000 boards over a 12-month period to Conte at a stipulated price per board, with provision for penalties for failure to perform.
An examination and discussion of different theories proposed to explain clairvoyance, precognition, psychokinesis and other psi phenomena including electromagnetic radiation and quantum theory.
Abstract The strengths and weakness of various theories including extremely low frequency (ELF) electromagnetic radiation waves and quantum theory as it applies to psi are discussed. Also examined are the problems of scientific paradigm shifts and the possibility that the statistical evidence for psi activity is an "anomaly" in our current paradigm and a precursor to a paradigm shift.
From the Paper "Parapsychology occupies a unique position within the scientific realm. The results of the field are often considered invalid, fraudulent, or insignificant. Psi is often thought to be inconsistent with the current knowledge of physics. Despite the large body of statistical evidence for anomalous cognition, psi will not be widely accepted until a solid, testable physical theory is developed. Although the uncertainties and seemingly illogical consequences of quantum theory seem promising for the development of this sort of theory, as yet none exists."
Tags: elf, occult, paradigm, parapsychology, psychic, quantum, statistics, testing, theory
Abstract This paper deals with Parse's human becoming theory as a means for providing structure for ways of thinking and being with patients, as they create their own quality of life. The author draws upon his own life experience and suggests implications for the use of the theory in nursing practice. The paper appends a copy of William Ernest Henley's poem, "Invictus".
Outline:
Life Experience
Definition/Description of Hope
Content Acquired through Concept Clarification Process
Hope in Relation to Parse's Theory Implications for Nursing Practice
From the Paper "Parse's theory of human becoming theory is a means for providing structure for ways of thinking and being with patients as they create their own quality of life. Human becoming theory is concerned with lived experiences of health (Kelly, 1999). The holistic approach is essential since lived experience, meaning, and understanding all form various aspects of the unitary process of human life (Kelly, 1999). Parse's concepts guide nursing for being present with the patient as they illuminate meaning, synchronize rhythms, and co-transcend with the possibles. Hope is based in these possibles: the person is moving beyond the present toward the unknown. My life experience will illustrate how Parse's theory helps the person to maintain hope and to achieve transformation. For Parse, the central idea is that the person is expert for their lives and they always have choices. The person is involved in a search for meaning and is capable of achieving transformation."
Abstract This paper shall examine the argument that most theories of deviance are less efficient than they might otherwise be because they fail to take into account the extent of organization among those who commit various deviant acts. The following essay ultimately agrees with this contention, but it does raise a number of caveats which should be borne in mind when criticizing sociological theorists for what they have and have not done over time.
From the Paper "In recent years, the efficiency of deviance theories has come under increasing fire from researchers. In particular, some scholars have argued that theories of deviance are less efficient (and precise) than they should be for the very straight-forward but important reason that they fail to take into account the extent of organization among those who commit various deviant transgressions. Simply put, this paper will explore such an argument by asking what precisely is meant by "taking into account" the "extent of organization" among those guilty of deviant acts. Beyond that, the paper will also argue that "efficiency" in any sociological theory may be next to impossible to achieve if mathematical precision is what is sought. Finally however, the paper does acknowledge that social deviance theories are not as informed as they could be because they do fail to take into account the extent of..."
Abstract The following are the questions answered with an average of two pages per answer: 1) How do Augustine, Boethius, Aquinas and Dante represent the relation between word and world? 2) How do Sidney, Pope and Hume go about defining a standard of taste? 3) Johnson says "Shakespeare always makes nature predominant over accident." What does he mean by this statement? 4) Discuss Wordsworth's account of the process of poetic creation. 5) What does Arnold mean by "criticism"? 6) Discuss the role Nietzsche sees for art in civilization.
Abstract This paper analyzes the factors necessary for a managerial accountant to succeed in an independent practice and within a larger organization. The author emphasizes that managerial accountants must set the standard for communication within their practices, particularly in regard to strategic issues and relationships between other accountants in their practice. Additionally, the paper shows that managerial accountants must be linked organizationally to the accounting department that they support, which includes training end users to become more proficient in interpreting financial documents. The author concludes that more research is needed in the area of managerial accounting communication so that managers responsible for making training decisions and communicating on a continual basis will have enough tools with which to base their decisions.
Outline:
Introduction to Communication within the Accounting Profession
Leadership over the Managerial Accountant Leadership by the Managerial Accountant Decision-Making by the Managerial Accountant Staff Motivation through Communication by the Managerial Accountant Communication and Compensation
Outside Training
Management Priorities by the Managerial Accountant Communicating Expectations of Staff
Marketing
The Communication of Ethical Standards
Conclusion
From the Paper "As a result, managerial accountants must be flexible to change and adaptation, and those with a broad spectrum of behavioral understanding in addition to financial skills are more properly suited for their positions. This includes a communication medium that reaches the intended audience efficiently and effectively. This paper will analyze the correlation between managerial accountants and their means of communication necessary for their practice to thrive. It will also provide recommendations throughout that managerial accountants can incorporate into their practice in order to bring the profession as a whole to a new level of success."
This paper defines the term accounting ratios and details why they are a significant tool applied by accountants when presenting accounting statements.
Abstract The writer of this paper examines the importance of accounting ratios in business. Accounting ratios illustrate the present as well as the prospective, so that shareholders can visualize how much gain a business attained, the total worth of the assets and the level of cash reserves available. This well-researched paper discusses the advantages and disadvantages of accounting ratios. One significant drawback of the accounting ratio is that it depends too heavily on the conventional costs that lead to twists in quantifying performance. Ratios are required to be represented meticulously. They can entail the evidences to the performance of the company or financial environment. However, they are unable to demonstrate whether the performance is good or bad out their own. The writer details the manner in which the final figures of accounting ratios are achieved, while discussing the fact that these ratios necessitate some quantitative information for an informed analysis to be made. The writer contends and clearly explains why accounting ratios are completely dependent on the supplied data which may or may not be accurate.
Table of Contents:
Introduction
Discussion
Conclusion
References
From the Paper "A markedly low accounts ratio may give rise to angry suppliers and remarkably high inventory turnover ratios may lead to supply shortages and angry customers. The one that is correct for one company may not be considered appropriate for another one. Besides, no two companies are found to be similar irrespective of the fact that they are competitors in the same industry or market. Application of ratios to evaluate one company with another provides misleading information. Businesses may be within the same industry but have distinguished financial and business risk. Ratios are completely dependent on the data that may or may not be accurate."
Abstract This paper examines the future of accounting by investigating current and future trends. This includes considering the changes in the work environment for accounting employees, trends in accounting roles and future opportunities for accountants, and future skills of accountants that will be in high demand. Considering these three areas shows where business accounting is heading and how best accounting professionals can prepare for these changes.
From the Paper "The business world is in a period of change, with accounting a major part of that business world. As one report says, "Accounting is the language of business. It is and always will be the analysis of how money is used by businesses, nonprofit organizations, governments and individuals" (Insight). As the business world changes, accounting must change to continue to meets the needs of businesses. This is one of the areas that will greatly influence the future of management accounting. To understand this issue further, the current and future trends in accounting will be investigated. This includes considering the changes in the work environment for accounting employees, trends in accounting roles and future opportunities for accountants, and future skills of accountants that will be in high demand. Considering these three areas will show where business accounting is headed and how best accounting professionals can prepare for these changes."
Abstract In this article the writer discusses the two unique sub-functions within the accounting field: managerial accounting and financial accounting. The specific functions, responsibilities and duties of each function are discussed in relation to the broader field of accounting. Further consideration is given to the income statement and balance sheet and how they are related. Finally, the use of accounting principles and techniques in managerial decision-making is also discussed. The document concludes with a brief overview of accounting.
From the Paper "Accounting within the business sphere is largely divided into two separate divisions: financial and managerial accountants. The presence of financial accountants and management accountants in most large corporations today is a testament to the complexity of the global economy, the legal and governance rules an entity must operate under, and the sheer amount of information the profession must deal with on a daily basis. The importance of accounting as a basic function of business activity cannot be overstated."
